For the month of May 2016, Tope Company issued the following checks as recorded in its Cash
Disbursement Journal:
Check Date
05/02/2016
05/10/2016
05/15/2016
05/18/2016
05/30/2016
Check Number
1256
1257
1258
1259
1260
Payee Amount
Jane
2,000
May
300
Nicole
4,500
Cathy
8,700
Perry
1,200
As per the bank statement received by Tope, the following checks were presented and paid by
the bank:
Check Number
1256
1259
1260
Payee
Jane
Cathy
Perry
Amount
2,000
8,700
1,200
Instruction: Identify checks outstanding as of May 2016.
The cash receipts journal of Malaya Merchandising reflected the following collections for the
month of April 2016:
Official
Receipt Date
05/02/2016
05/08/2016
05/09/2016
05/25/2016
05/26/2016
Official Receipt
Number
4171
4172
4173
4174
4175
Customer Amount
Carl
Vince
Ryan
Fatima
Cherry
4,000
2,000
8,900
7,800
3,200
It is the policy of the company to deposit collection within the following day from the date of
collection.
The bank statement for April 2016 revealed following deposits made:
Deposit Date Amount
05/03/2016
4,000
05/09/2016
2,000
05/10/2016
8,900
05/26/2016
7,800
05/26/2016
3,200
Instruction: Compute for the deposit in transit or undeposited collection as of end of April 2016
Identify whether the following independent transaction is a book or a bank reconciling. In addition,
determine the amount of the error and state whether the amount will be added or deducted in the
preparation of the bank reconciliation.
1. Pacioli Repairs received P1,500 from Jane. The bookkeeper recorded the amount as
P500.
2. Nation Bank collected from the customer of Pacioli the sum of P5,000 representing
payment of the said customer to Eagle. No entry was made in the books of Eagle.
3. The bank teller deducted Check 123 for P3,500 from the account of Pacioli. The said
check was issued by Boulton Company, a different depositor of the bank.
4. The bookkeeper of Pacioli recorded Check No. 345 in the Cash Disbursement Journal as
P5,205. The correct amount of the check was P5,250.
5. The deposits of Pacioli earned interest of P100 for the month. Pacioli does not have
knowledge of interest earned until it receives the bank statement.
Practice Set 4
Item 1: The bank statement for August 2018
shows an ending balance of Php3,490.
Item 2: On August 31 the bank statement
shows charges of Php35 for the service
charge for maintaining the checking account.
Item 3: On August 28 the bank statement
shows a return item of Php100 plus a related
bank fee of Php10. The return item is a
customer's check that was returned because
of insufficient funds.
Item 4: The bank statement shows a charge
of Php80 for check printing on August 20.
Item 5: The bank statement shows that Php8
was added to the checking account on
August 31 for interest earned by the company
during the month of August.
Item 6: The bank statement shows that a note
receivable of Php1,000 was collected by the
bank on August 29 and was deposited into
the company's account. On the same day, the
bank withdrew Php40 from the company's
account as a fee for collecting the note receivable.
Item 7: The company's Cash account at the end of August shows a balance of Php967.
Item 8: During the month of August the company wrote checks totaling more than Php50,000. As
of August 31 Php3,021 of the checks written in August had not yet cleared the bank and Php200
of checks written in June had not yet cleared the bank.
Item 9: The Php1,450 of cash received by the company on August 31 was recorded on the
company's books as of August 31. However, the Php1,450 of cash receipts was deposited at the
bank on the morning of September 1.
Item 10: On August 29 the company's Cash account shows cash sales of Php145. The bank
statement shows the amount deposited was actually Php154. The company reviewed the
transactions and found that Php154 was the correct amount.
Given the above information, discuss each item whether it is a book reconciling or a bank
reconciling item. After the discussion, prepare a bank reconciliation statement.
Bank reconciliation problem: The bank statement for Juan Company shows a balance per bank
of P15,907.45 on April 30,2015.
On this date the balance of cash per books is P11,589.45.
Additional information are provided below:
Deposits in transit: April 30 deposit (received by the bank on May 1) P2,201.40
Outstanding checks: No. 453-P3,000.00
No. 457-P1,401.30
No. 460-P1,502.70
Errors: Juan wrote check no. 443 for P1,226.00 and the bank correctly paid that amount.
However, he recorded the check as P1,262.00.
Bank memoranda
Debit– NSF check from Pedro P425.60.
Debit– Charge for printing company checks P30.00
Credit – Collection of note receivable for P1,000 plus interest earned of P50, less bank collection
fee of P15.00.
Required: Prepare a bank reconciliation statement using the adjusted method.
Hint: Bank Debit Memo are deductions made by the bank to the account of the depositor
Bank Credit Memo are additions made by the bank to the account of the depositor.