MODULE 2: BANK RECONCILIATION_PROOF OF CASH PROBLEM SOLVING

1. In preparing the 31 August 2019 bank b. What total amount of cash should be
reconciliation, AC provided the following reported at year-end?
information.
5. MC provided the following data pertaining to
Balance per bank 1,805,000 the cash transactions and bank account for
Deposit in transit 325,000 the month of May:
Return of customer's check for
60,000
insufficient fund A Cash balance per accounting 1,719,000
Outstanding checks 275,000 record
Bank service charge for August 10,000 B Cash balance per bank 3,195,000
statement
On 31 August 2019, what is the adjusted C Bank service charge 10,000
cash in bank? D Debit memo for the cost of 12,000
printed checks delivered by the
2. In preparing the bank reconciliation on 31 bank; the charge has not been
December 2019, CC provided the following recorded in the accounting
record
data: E Outstanding checks 685,000
F Depot of May 30 not recorded 500,000
Balance per bank statement 3,800,000 until June 1
Deposit in transit 520,000 G Proceeds of a bank loan of May 570,000
Amount erroneously credited by 30, not recorded in the
40,000
bank to CC account accounting record, net of
Bank service charge for interest of P30,000
5,000
December H Proceeds from a customer 810,000
Outstanding checks 675,000 promissory note, principal
amount P800,000 collected by
What is the adjusted cash in bank on 31 the bank not taken up in the
December 2019? accounting record with interest
I Check No. 1086 issued to a 120,000
3. The following information pertains to Bustos supplier entered in the
accounting record as P210,000
Company as of December 31, 2019:
but deducted in the bank
statement at an erroneous
Cash balance per general ledger 15,000,000 amount of
Cash balance per bank J Stolen check lacking an 80,000
14,550,000
statement authorized signature deducted
Checks outstanding (including from MC’s account by the bank
1,000,000
certified check of P100,000) in error
Bank service charge shown in K Customer check returned by the 77,000
50,000
December bank statement bank marked NSF, indicating
Error made by Bustos in that the customer balance was
recording a check that cleared not adequate to cover the check;
the bank in December (check no entry has been made in the
200,000
was drawn in December for accounting record
P500,000 but recorded at
P700,000)
What is the adjusted cash in bank?
Deposit in transit 1,500,000

At the December 31, 2019 balance sheet 6. The following information was taken from the
cash in bank should be? records of ABC:

Nov Dec
4. DC prepared the following bank reconciliation A Book Balance 5,600 ?
on 31 December: B Book Debits 31,900
C Book Credits 28,200
Balance per bank 2,800,000 D Bank Balance 15,000 20,400
statement E Bank Debits ?
Add: F Bank Credits 27,300
DIT 195,000 G Notes collected by bank 2,250 3,000
Checkbook printing H Bank service charge 20 100
5,000
charge I NSF Check 880 1,400
Error made by DC J Overstatement of check
in recording check 35,000 1,900 1,200
in payment of salaries
issued in Dec K Deposit in transit 6,000 11,250
NSF check 110,000 345,000 L Outstanding checks 9,750 17,850
Total 3,145,000 M Deposit of 123 Corp.
Less: erroneously credited to 2,400 1,800
Outstanding check 100,000 ABC Co.’s account
Note collected by 215,000 315,000
bank including
Required:
P15,000 interest
Balance per book 2,830,000 a. Unadjusted Book Balance as of
December
The entity had cash on hand P500,000 and b. Adjusted cash receipts in December
petty cash fund P50,000 on December 31. c. Adjusted cash disbursement in
December
a. What amount should be reported as cash d. Adjusted cash balance as of 31
in bank at year-end? December
“AN ARROW CAN ONLY BE SHOT BY PULLING IT BACKWARD. IF LIFE IS DRAGGING YOU BACK WITH DIFFICULTIES, IT MEANS THAT IT’S GOING TO LAUNCH YOU INTO SOMETHING GREAT. SO JUST FOCUS AND KEEP ON AIMING”

ALBERT I. RIVERA, CPA, MBA, CRA PAGE 1 OF 2

MODULE 2: BANK RECONCILIATION_PROOF OF CASH PROBLEM SOLVING

7. Data concerning the cash records of LC for

the months of September and October 2019:

a. Unadjusted book balance on Sept 30

amounted to P2,258,000
b. Total receipts per book in Oct,
P1,400,000
c. Total disbursements per book in Oct,
P2,400,000
d. Unadjusted bank balance on Sept 30
amounted to P2,100,000
e. Total credits per bank in Oct amounted to
P1,200,000
f. Total debits per bank in Oct amounted to
P2,500,000
g. NSF checks in Sept 30 amounted to
P60,000 while on Oct 31 amounted to
P40,000
h. Collection of accounts receivable not
recorded by the company in Sept 30,
P30,000 and P50,000 in Oct 31
i. Erroneous bank charge in Sept 30,
P10,000 and P18,000 in Oct. 31
j. Erroneous bank credit in Sept 30, P7,000
and P9,000 in Oct 31
k. Understatement of check in payment of
rent payable in Sept 30, P90,000 and
P120,000 in Oct 31
l. Deposit in transit in Sept 30, P130,000
m. Outstanding checks in Oct 31, 30,000

Required:
a. Adjusted cash in balance Sept 30
b. Adjusted cash receipts during Oct 31
c. Adjusted cash in bank balance in Oct 31
d. Deposit in transit Oct 31
e. Outstanding checks Sept 30

8. The following were taken from the records of

ABC:

Balance per bank, Oct 4,600

Balance per bank, Nov 3,800
Total credits per bank, Nov 1,500
Balance per books, Oct 3,700
Total credits per book, Nov 5,200
Balance per books, Nov 1,600
Collection of note directly
500
credited to ABC account in Oct
Proceeds of loan directly 300
credited to ABC’s account in Nov
– not yet recorded in the books
NSF checks returned in Oct 900
NSF checks returned in Nov – 200
not yet recorded in the books
Check received from a customer 2,000
amounting to P200 was recorded
in the books in October as
Check issued to supplier 1,000
amounting to P100 was recorded
in the books in Nov
Collections in Nov for P1,300 300
was recorded as
Checks properly drawn for 190
P1,900 was recorded by the
bank in Oct as
Deposit amounting to P1,500 150
was recorded by the bank in Nov
as
Deposit in Transit – Oct 800
Outstanding checks – Oct 2,190

Required:
a. Deposit In Transit, November
b. Outstanding Check, November
“AN ARROW CAN ONLY BE SHOT BY PULLING IT BACKWARD. IF LIFE IS DRAGGING YOU BACK WITH DIFFICULTIES, IT MEANS THAT IT’S GOING TO LAUNCH YOU INTO SOMETHING GREAT. SO JUST FOCUS AND KEEP ON AIMING”

ALBERT I. RIVERA, CPA, MBA, CRA PAGE 2 OF 2