lOMoARcPSD|13931487
Bank Reconciliation problem with solution
Accounting (Mindanao State University)
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Downloaded by Samantha Jane Labador (samantha2007schoolemail@gmail.com)
lOMoARcPSD|13931487
In your audit of the cash account of Karen Mae Company, you hav ascertained the following data relative
to the debits per books and credits per bank:
Book Debits in February
400,000
Bank credits in February
360,000
CM for interest earned in January but taken up in the books in February
5,000
CM for interest earned in February but taken up in the books in March
6,000
Check from customer in January amounting to ₱40,000 but was taken
up in the books as
4,000
Check from customer in February amounting to ₱20,000 but was taken
up in the books as
4,000
Check by company issued to supplier in January amounting to ₱3,000
but was taken up in the books as
₱30,000
Erroneous bank credit- February
2,500
Erroneous bank charge- January
1,000
Deposit in transit- January 31
50,000
How much is the undeposited cash collections at the end of the February?
c. ₱15,500
a. ₱47,500
b. ₱31,500
d. ₱46,500
Solution:
Deposit in transit, beginning
Add: Book debits for the month
Less: CM recorded this month
Error- check received (Jan)
Error- check issued (Jan)
Add: Error- check received (Feb)
Total
Less: Bank debits for this month
Less: CM for this month
Erroneous bank credit - Feb
Erroneous bank charge - Jan
Deposit in transit, ending
50,000
400,000
5,000
36,000
27,000
16,000
360,000
6,000
2,500
1,000
Downloaded by Samantha Jane Labador (samantha2007schoolemail@gmail.com)
348,000
398,000
350,500
47,500