balance or deducted from the book or bank account by putting (/) check mark or (x) cross mark on the corresponding column.
balance or deducted from the book or bank account by putting (/) check mark or (x) cross mark on the corresponding column.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Credit memos are items that are already added by the bank but have not been added by the
book as of the cut off date.
2. Debit memos are amounts that have been deducted by the bank but have not been deducted
per book.
3. Examples of debit memo include accounts receivable collected by the bank in favor of the
company and loan proceed directly credited by the bank to the account of the customer.
4. Monthly bank reconciliation is one of the internal control features in every company, which is
created to show that there is no discrepancy between the cash balance per book records and the
cash balance per bank records.
5. Reciprocal accounts should have the same balance after ail adjustments have been made.
Determine whether the following reconciling items should be added to the book or bank account
balance or deducted from the book or bank account by putting (/) check mark or (x) cross mark on the
corresponding column.
ADD
DEDUCT
DEDUCT
ADD TO
BANK
No
RECONCILING ITEMS
FROM
то
BOOK
FROM
BOOK
BANK
Jodi Dela Cruz Company had a receipt of
Php100,000 and correctly prepared its bank
deposit slip for Php 100,000. However, the
1
company recorded the receipt in its Cash
account as Php 101,000. How is the
difference of Php1,000 handled on the bank
reconciliation?
Blaze Mudlong wrote a check worth Php
46,000 and it cleared the bank for Php
46,000. However, the company recorded the
check in its Cash account as Php 64.000.
How is the difference of
handled on the bank reconciliation?
Bank erroneously posted another company's
3
Php18, 000
credit memo to MN Mitz Company's bank
account
Bank inadvertently charged Mikka Joson
Company's bank
company's bank fees
4
account
for
another
Bank service charge
6
Deposit in transit
7
Fee charged by bank for returned check
8
Interest credited to bank account
9
Outstanding checks
The bank collected a Note Receivable for the
Acer Garcia Corporation and credited the
company's bank account for Php 1,000,000.
10
Problem #1:
The company reported an unadjusted book balance of Php142000. The bank statement shows an
unadjusted balance of Php 232,000. The bank credited Php 5,000 to the account of the company for a
bank loan that It has requested. It also charged a Php1,000 bank penalty. A Php 23,000 outstanding
check was not yet recorded by the bank.
1. How much is the adjusted cash balance for the month?
2. How much is the deposit in transit for the month?
?
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