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    Proof of Cash

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    MARIAN POLANCO
    The document contains 3 problems involving bank reconciliation for different companies. Problem 1 shows computations of deposits in transit, outstanding checks, and bank reconciliation for June 30 and July 31. Problem 2 shows cash receipts and disbursements for Bigotry Company for August and reconciles differences between book and bank balances. Problem 3 reconciles the cash balances per books and bank statement for Bedlam Company for December 31.

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    Proof of Cash

    Uploaded by

    MARIAN POLANCO
    164 views7 pages
    The document contains 3 problems involving bank reconciliation for different companies. Problem 1 shows computations of deposits in transit, outstanding checks, and bank reconciliation for June 30 and July 31. Problem 2 shows cash receipts and disbursements for Bigotry Company for August and reconciles differences between book and bank balances. Problem 3 reconciles the cash balances per books and bank statement for Bedlam Company for December 31.

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    The document contains 3 problems involving bank reconciliation for different companies. Problem 1 shows computations of deposits in transit, outstanding checks, and bank reconciliation for June 30 and July 31. Problem 2 shows cash receipts and disbursements for Bigotry Company for August and reconciles differences between book and bank balances. Problem 3 reconciles the cash balances per books and bank statement for Bedlam Company for December 31.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    164 views7 pages

    Proof of Cash

    Uploaded by

    MARIAN POLANCO
    The document contains 3 problems involving bank reconciliation for different companies. Problem 1 shows computations of deposits in transit, outstanding checks, and bank reconciliation for June 30 and July 31. Problem 2 shows cash receipts and disbursements for Bigotry Company for August and reconciles differences between book and bank balances. Problem 3 reconciles the cash balances per books and bank statement for Bedlam Company for December 31.

    Copyright:

    © All Rights Reserved
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    You are on page 1of 7

    PROBLEM #1

    A.
    Computation of deposits in transit:
    Deposits in transit, June 30 400,000
    Book debits 4,000,000
    Credit Memo -300,000 3,700,000
    Bank credits 4,100,000
    Less: Credit Memo 3,500,000
    Less: July Credit Memo -300,000 3,700,000
    Deposits in transit, July 31 1,100,000

    B.
    Computation of outstanding checks:
    Outstanding checks, June 30 854,000
    Book credits 3,600,000
    Debit Memo -104,000 3,496,000
    Total check to be paid by the bank 4,350,000
    Less: Checks paid by the bank
    Bank debits 2,500,000
    Less: Debit Memo -1,000 -2,499,000
    Outstanding checks, July 31 1,851,000

    C.
    Bank Reconciliation, June 30
    Balance per book 1,000,000
    Note collected 300,000
    NSF check 100,000
    Service charge 4,000 -104,000
    Adjusted book balance 1,196,000

    Balance per bank 1,650,000


    Deposits in transit 400,000
    Outstanding checks -854,000
    Adjusted bank balance 1,196,000

    July 31:
    Computation of book balance:
    Balance, June 30 1,400,000
    Book debits, July 500,000
    Book credits -1,000
    Book balance, July 31 1,899,000

    Computation of bank balance:


    Balance, June 31 2,650,000
    Deposits in transit 1,100,000
    Outstanding checks -1,851,000
    Bank balance, July 31 1,899,000

    D.
    Adjusting Entries, July 31
    Cash in bank 500,000
    Loans receivable 500,000

    Bank service charge 1,000


    Cash in bank 1,000
    PROBLEM #2
    Bigotry Company
    A. Proof of Cash
    For the month of August 2020
    BOOK BEG RECIEPTS DISBURSEMENTS
    Balances 1,200,000 4,400,000 3,600,000
    Note collected by bank
    July 200,000 -200,000
    August 300,000
    NSF Check
    July -100,000 -100,000
    August 50,000
    Book error
    Underrecording of collection 180,000
    Underecording of payment 540,000
    Adjusted cash balance 1,300,000 4,680,000 4,090,000

    BANK BEG RECIEPTS DISBURSEMENTS


    Balances 800,000 5,000,000 3,940,000
    Deposit in transit
    March 600,000 -600,000
    April 480,000
    Outstanding Checks
    March -100,000 -100,000
    April 650,000
    Bank error
    Errorneous bank credit -200,000
    Errorneous bank charge -400,000
    Adjusted cash balance 1,300,000 4,680,000 4,090,000

    B.
    Balance per book, Aug 31 2,000,000
    Receipt per book, Aug 31 4,400,000

    Unadjusted book balance


    Jul. 31 1,200,000
    Receipt per book 4,400,000
    Disbursement per book 3,600,000
    Aug. 31 2,000,000

    Deposit in transit 600,000


    Jul. 31 600,000
    Aug 31, Receipt 480,000
    Aug. 31 480,000

    Outstanding check
    Jul. 31 100,000
    Disbursement 100,000
    August Disbursement 650,000
    Aug. 31 650,000
    Book Credit 600,000
    Disbursement 54,000
    Aug. 31 54,000

    Bank Credit
    Disbursement 0
    Receipt 200,000
    Aug. 31 200,000
    Bank Credit 400,000
    Aug. 31 400,000
    July 31, Receipt 100,000
    Disbursement 100,000
    August 31, Disbursement 5,000
    Aug. 31 5,000

    Note collected by bank


    Jul. 31 200,000
    Receipt 200,000
    August 31, Receipt 300,000
    Aug. 31 300,000
    Unadjusted bank balance, July 31 900,000
    Receipt 5,100,000
    Disbursement 4,400,000
    Aug. 31 1,800,000
    END
    2,000,000

    300,000

    -50,000

    180,000
    -540,000
    1,890,000

    END
    1,860,000

    480,000

    -650,000

    -200,000
    400,000
    1,890,000
    PROBLEM #3

    A. Bedlam Company
    Proof of Cash
    For the Month of December 31

    30-Nov 31-Dec
    Cash in Bank balance 2,032,000 3,160,000
    Add:
    Outstanding Check 180,000 592,000
    Total 180,000 592,000
    Less:
    Deposit in Transit 80,000 498,000
    Check errorneously
    Chargee by bank 40,000 50,000
    Bank service charged 2,000 4,000
    Note wrongly as cash
    Receipt by entry 200,000 300,000
    Total 322,000 852,000
    Bank statement
    Balance 1,890,000 2,900,000

    B.
    Particulars Debit Credit

    Bank service charged 4,000


    Note receivable 300,000
    Cash 304,000

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