BANK RECONCILIATION Depositor's record ^ ^ ^ ^ Date 11/2/2020 11/5/2020 11/10/2020 11/15/2020 11/17/2020 11/20/2020 11/25/2020 11/28/2020 Ref. No. OR 001 OR 002 CK 001 CK 002 CK 003 OR 003 CK 004 OR 004 Bank's record FIRST BANK Particulars Debit 100,000.00 20,000.00 10,000.00 15,000.00 12,000.00 *** OC *** ERROR *** OC *** DIT Credit 13,000.00 16,000.00 40,000 Balance 100,000.00 120,000.00 110,000.00 95,000.00 83,000.00 96,000.00 80,000.00 120,000.00 ^ ^ ^ ^ DEPOT SUITOR COMPANY Date Ref. No. Particulars Debit Credit 11/2/2020 CD 100,000.00 11/6/2020 CD 20,000.00 11/10/2020 CK 001 10,000.00 11/15/2020 CK 162 *** ERROR 5,000.00 11/16/2020 CD *** ERROR 30,000.00 11/17/2020 CK 003 12,000.00 11/20/2020 CD 31,000.00 11/25/2020 CM *** 8,000.00 11/25/2020 DM *** 800.00 Balance 100,000.00 120,000.00 110,000.00 105,000.00 135,000.00 123,000.00 154,000.00 162,000.00 161,200.00 RECONCILING ITEMS BOOK BANK CM (+) DIT (+) DM (-) OC (-) ERROR (+, - ) ERROR (+, - ) OR 003 = correct amount is P 31,000, recorded by the depositor in the amount of P13,000 ADJUSTED BALANCE METHOD Depot Suitor Company Bank Reconciliation November 30, 2020 Cash in bank, per depositor's record (unadjusted book balance) Add: Credit memo (note collection) Understatement in recording a deposit (P31,000 - P13,000) Total Less: Debit memo (service charge) Adjusted cash in bank balance Cash in bank, per bank statement (unadjusted bank balance) Add: Deposit in transit Erroneous bank debit Total Less: Outstanding checks (CK No. 002 and 004) Erroneous bank credit Adjusted cash in bank balance 120,000.00 8,000.00 18,000.00 26,000.00 146,000.00 800.00 145,200.00 ADJUSTED BALANCE METHOD *Book reconciling items 1. CM ( + ) 2. DM ( - ) 3. Understatement in recording a deposit ( + ) 4. Overstatement in recording a deposit ( - ) 5. Understatement in recording a check payment ( - ) 6. Overstatement in recording a check payment ( + ) Adjustments (Book reconciling items only): Cash in bank Note receivable To record the note collected by the bank *Bank reconciling items 1. DIT ( + ) 2. OC ( - ) 3. Erroneous credit ( - ) 4. Erroneous debit ( + ) 8,000.00 8,000.00 161,200.00 40,000.00 5,000.00 31,000.00 30,000.00 Cash in bank 45,000.00 206,200.00 61,000.00 145,200.00 18,000.00 Accounts receivable To correct the understatement in recording a collection. 18,000.00 Bank service charge 800.00 Cash in bank 800.00 To record the service charge debited by the bank against the cash in bank account. BOOK TO BANK METHOD BANK TO BOOK METHOD Depot Suitor Company Bank Reconciliation November 30, 2020 Depot Suitor Company Bank Reconciliation November 30, 2020 Cash in bank, per depositor's record (unadjusted book balance) Add: Credit memo Understatement in recording a deposit Outstanding checks Erroneous bank credit Total Less: Debit memo Deposit in transit Erroneous bank debit Cash in bank, per bank statement (unadjusted bank balance) 120,000.00 8,000.00 18,000.00 31,000.00 30,000.00 800.00 40,000.00 5,000.00 87,000.00 207,000.00 45,800.00 161,200.00 *Book reconciling items Are treated in the same way they are accounted for under the adjusted balance method. 1. CM ( + ) 2. DM ( - ) 3. Understatement in recording a deposit ( + ) 4. Overstatement in recording a deposit ( - ) 5. Understatement in recording a check payment ( - ) 6. Overstatement in recording a check payment ( + ) *Bank reconciling items Are treated opposite the way they are accounted for under the adjusted balance method. 1. OC ( + ) 2. DIT ( - ) 3. Erroneous debit ( - ) 4. Erroneous credit ( + ) Cash in bank, per bank statement (unadjusted bank balance) Less: Debit memo Deposit in transit Erroneous bank debit Total Less: Credit memo Understatement in recording a deposit Outstanding checks Erroneous bank credit Cash in bank, per depositor's record (unadjusted book balance) 161,200.00 800.00 40,000.00 5,000.00 8,000.00 18,000.00 31,000.00 30,000.00 45,800.00 207,000.00 87,000.00 120,000.00 *Bank reconciling items Are treated in the same way they are accounted for under the adjusted balance method. 1. DIT ( + ) 2. OC ( - ) 3. Erroneous credit ( - ) 4. Erroneous debit ( + ) *Book reconciling items Are treated opposite the way they are accounted for under the adjusted balance method. 1. CM ( - ) 2. DM ( + ) 3. Understatement in recording a deposit ( - ) 4. Overstatement in recording a deposit ( + ) 5. Understatement in recording a check payment ( + ) 6. Overstatement in recording a check payment ( - )
