BANK RECONCILIATION – FINANCIAL ACCOUNTING AND REPORTING

1. Information in relation to Jon Company's bank reconciliation for July

• Deposits made by Jon Company in June P950,000
• Deposits recorded by bank in July 1,020,000
• Deposit in transit, June 30, 2016 225,000
• Credit memo — loan proceeds in June 150,000
• Credit memo — loan proceeds in July 100,000
The amount of deposits in transit at July 30, 2016 is

2. The following was provided by Robb Company for the month of June
• Deposits and credit memos recorded by the bank in June, including interest of
P2,500; P480,000
• Total debits to Cash in all journals during June, P555,000
• Deposit In transit as of May 31, P60,000
• Interest Income reflected In the May bank statement, recorded only in the
books in June, P4,000
• Loan proceeds reflected in the May bank statement recorded only in the books
in June, P82,000.
• Direct payment to the bank by Robb Company’s customers. Robb Company was not
informed of the said payment as of June 30, P47,000.
The deposit in transit at June 30 is

3. The following were provided by Bran Company

• Check issued by Bran Company in December P780,000
• Checks paid by the bank in December 820,000
• Outstanding checks, November 30, 2016 70,000
• Debit Memo – NSF checks in December 14,000
• Debit Memo – NSF checks in November 22,000
The amount of outstanding checks at December 31, 2016 is

4. The following were provided by Sansa related to August

• Total bank debits for the month of August P675,000
• Total book credits for the month of August 647,000
• Outstanding checks at July 31 140,000
• Debit Memo – July service charges/NSF checks 28,000
• Debit Memo – August service charges/NSF checks 33,000
The amount of outstanding checks at August 31, 2016 is

5. Arya Company has gathered the following information in relation to its checking
account in Iron Bank for the month of April
• Balance per books April 30, P125,000; per bank statement April 30 P104,000
• Deposits still in transit at April 30 was P47,000
• NSF checks returned by the bank in April was P28,000 and April charges amounted
to P6,000
• Checks issued but have not yet cleared by April was P33,000
• Proceeds form loan directly credited to Arya Company’s account amounted to
P25,000, while interest on deposits amounted to P2,000
Adjusted balance per book Adjusted balance per bank

6. Jamie Company has gathered the following information in relation to its current
account in BPI for the month of June.
• Cash in bank – BPI P147,000; BPI statement balance, P175,500
• Proceeds of note sent by Jamie Company to BPI for collection, P75,000. No
entry has been made when the note was sent for collection.
• Outstanding checks at the end of June, P37,000
• Deposit in transit at the end of June, P62,000
• Customers’ checks totalling P35,000, deposited in June 26 were returned marked
as “Drawn Against Unfunded Deposits”
• A deposit of Jamie Company for P75,000 was recorded by the bank in another
account; subsequently the bank erroneously recorded a deposit for P12,000 of
James Company to Jamie Company’s account.
• Deposits in June 25 for P19,000 was recorded at P14,000; deposits in June 18
for P56,000 was recorded as P65,000.

Source: CRC – ACE Review School

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BANK RECONCILIATION – FINANCIAL ACCOUNTING AND REPORTING

• Checks written and issued in June 27 for P6,000 was recorded at P600; while
checks written and issued in June 28 for P2,200 was recorded at P22,000.
• Checks issued by Jamie Company for P4,500 was charged erroneously by the bank
against James Company.
• Interest Income for the month of June P3,900; service charges for the Month
of June P2,400.
Adjusted balance per book Adjusted balance per bank

7. The cash account of Cersei Company disclosed a balance of P1,128,240 on October

31, while the bank statement showed a balance of P1,470,300. Comparing the
statement with the cash records, the following facts were developed.
• Customer’s note discounted on October 21; dishonoured October 26 and the bank
charge Cersei Company, P305,000 which included a service charge of P5,000.
• Customer’s check for P90,000 erroneously credited by the bank in another
account. Cersei Company correctly recorded this payment by the customer.
• Check drawn against Cersei Company dated October 1 for P79,500 was erroneously
debited by bank as P97,500.
• Receipts of October for P685,000 were deposited by the bank until November 1
• Check drawn against Cersei Company dated October 12 for P27,000 was erroneously
debited by the bank as P2,700
• A bank memo stated that a customer’s note for P250,000 and interest of P6,250
had been collected on October 29, and the bank charged P1,250 as service fee.
No entry was made on the books when the note was sent to the bank for
collection.
• Check number 5566 for P124,250 was entered in the cash disbursements journal
at P122,450.
• Bank charges of P3,000 in October, not yet recorded in the books
• Cersei account was charged on October 26 for a customer’s uncollectible check
amounting to P114,300.
• Check number 5599 for P3,290 was entered as P32,900
• Customer’s check for P12,500 was entered as P1,250 by both the depositor and
the bank. The bank has corrected the error by the end of October.
• The outstanding checks during October amounted to P1,239,000.
Adjusted balance per book Adjusted balance per bank

8. The following were provided by Ned Company for the month of August.
• Cash balance per bank statement, August 31, P358,000
• Check to suppliers for P1,350 was recorded in the books as P13,050
• Note including interest of P1,200 collected by the bank and not yet taken up
in the books; P15,400.
• NSF check returned with the bank statement; P22,100
• Customers’ deposits as reflected in the bank statement P7,000 was recorded in
the books as P700.
• Deposit in transit as of August 31, 2016; P62,400
• Check drawn against the account of Nad Company was erroneously debited against
of Ned Company’s account by the bank; P16,200.
• Outstanding checks as of August 31, 2016; P44,300
• Bank service charge for August 2016; P1,900
• Deposit made by Ned Company’s collector was erroneously credited to Kitty
Company by the bank; P9,200.
The unadjusted cash balance per ledger on August 31 is

9. The following format was to be used in preparing of the two-date bank

reconciliation for Catelyn Company.

Balance December December Balance

November 30 Receipts Disbursements December 31
Balance per bank statement
Items to be added: 1 2 3 4
Items to be deducted: 5 6 7 8
Adjusted bank balance xx xx xx xx

Source: CRC – ACE Review School

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BANK RECONCILIATION – FINANCIAL ACCOUNTING AND REPORTING

Balance December December Balance

November 30 Receipts Disbursements December 31
Balance per book statement
Items to be added: 9 10 11 12
Items to be deducted: 13 14 15 16
Adjusted book balance xx xx xx xx

Indicate in which the reconciling items would appear.

______ ______ A. Deposits of P1,000 in November recorded by the bank in

December
______ ______ B. Deposits in transit at December 31, 2016,P 2,000

______ ______ C. P3,000 checks written in November that cleared the bank
in December
______ ______ D. Outstanding checks at December 31, 2016, P4,000
Proceeds of a bank loan of P10,000 was credited by the
______ ______ E. bank to Catelyn Company’s account in November but
recorded by Catelyn Company only in December

______ ______ F. Proceeds of a bank loan of P11,000 was credited by the

bank to Catelyn Company's account in December.
Customer NSF check of P12,000 was returned by the bank
______ ______ G. in November and recorded by Catelyn Company in
December.
______ ______ H. Bank service charges for December P1,300

10. You have hired as the new assistant controller of Tyrion Company and assigned
the task of proving the cash account balance. As of December 31, 2016, you have
obtained the following information relative to the December cash operations.

• Balance per bank

November 30, 2016 P138,300
December 31, 2016 115,716
• Balance per books
November 30, 2016 P101,162
December 31, 2016 105,046
• Receipts for the month of December
Per bank P714,330
Per book 742,415
• Outstanding checks
November 30, 2016 P 37,958
December 31, 2016 45,297
• Dishonoured checks returned by the bank and recorded by Tyrion Company
amounted to P3,125 during the month of December 2016; according to the books
P2,500 was redeposited. Dishonoured checks, recorded on the bank statement
but not on the books until the following months, amounted to P820 at November
and P1,150 at December 31, 2016.
• On December 31, 2016 a P1,162 check of the Tyrell Company was changed to
Tyrion Company account by the bank error.
• Proceed of a note of Bolton Company collected by the bank for Tyrion Company
on December 10, 2016, were not entered on the books, P2,065.
• Interest on a bank loan for the month of December charged by the bank but not
recorded on the books amounted to P4,230
• Deposit in transit: December 31, 2016, P30,150.
Prepare a 4-column bank reconciliation arriving at the adjusted book and bank
balances.

Source: CRC – ACE Review School

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