Below is the bank reconciliation of CPA Company for July 2021: Balance per Bank, July 31, 2021 Add: Deposit in Transit Total P 750,000 120,000 P 870,000 Deduct: Outstanding Checks Erroneous Bank Credit P 140,000 50,000 190,000 P 680,000 Cash Balance per books, July 31, 2021 The bank statement for August 2021 contains the following data: Total deposits – P550,000; Total charges (including non-sufficient fund check of P40,000 and service charge of P2,000) – P480,000. All outstanding checks on July 31, 2021 including the bank credit were cleared in the bank in August 2021. There were outstanding checks of P150,000 and deposits in transit of P190,000 on August 31, 2021.

Below is the bank reconciliation of CPA Company for July 2021: Balance per Bank, July 31, 2021 Add: Deposit in Transit Total P 750,000 120,000 P 870,000 Deduct: Outstanding Checks Erroneous Bank Credit P 140,000 50,000 190,000 P 680,000 Cash Balance per books, July 31, 2021 The bank statement for August 2021 contains the following data: Total deposits – P550,000; Total charges (including non-sufficient fund check of P40,000 and service charge of P2,000) – P480,000. All outstanding checks on July 31, 2021 including the bank credit were cleared in the bank in August 2021. There were outstanding checks of P150,000 and deposits in transit of P190,000 on August 31, 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Prepare a bank reconciliation on 30 June 2016 based on the information provided below. Show all your…

A: The bank reconciliation statement is prepared at end of period to find the errors in bank statement…

Q: Jungkook Inc. had the following bank reconciliation at March 31, 2020: Balance per bank…

A: Bank reconciliation statement is prepared where an entry which is found in one book (Cash book or…

Q: On January 1, 2021, Rica Company received its December 2020 bank statement. However, the closing…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: August 31, 20 Compa balance per its books $26.48 statement balance of $17,260. A comparison of the…

A: The bank reconciliation statement is prepared to equate the balances of the cash book and pass book…

Q: Shown below is the information needed to prepare a bank reconciliation for Mega Communications at…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: Question 6 of 8 -/ 40 E Prepare the journal entries to be made by Sheridan Inc. at August 31.…

A: There are two type of cash balances exists in the business books. One is cash balance as per…

Q: Swifty, Inc. had the following bank reconciliation at March 31, 2021: Balance per bank statement,…

A: Cash Balance per books The final balance of an account that shows in the general ledger is known as…

Q: Crane, Inc Balance per bank statement, 3/31/20 Add: Deposit in transit Less: Outstanding checks…

A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…

Q: in preparing its bank reconciliation for the month of April 2021, Oriole, Inc. has available the…

A: The bank reconciliation statement is prepared to equate the cash and pass book balances with various…

Q: Prepare a bank reconciliation at July 31.

A: Certain transactions are not reflected in bank statement on real time basis as the banks time to…

Q: The accountant of GHI Company prepared the following bank reconciliation at December 31,2020: P…

A: Cash balance as per book is determined from the cash balance as per bank statement after making some…

Q: SMU Tax Services gathered the following information to prepare their bank reconciliation for the…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: Zel Enterprise most recently reconciled its bank statement and book balances of cash on 30 June 2019…

A: Bank Reconciliation statement: Bank reconciliation statement is a report that summarized the banking…

Q: n preparing its August 31, 2022 bank reconciliation, AA Corp. has available following information:…

A: Unadjusted Balance as per book on August 31, 2021 Balance as per Bank statement P18,050…

Q: In preparing its bank reconciliation for the month of April 2020, Sunland, Inc. has available the…

A: Bank Reconciliation is prepare in every organisation for reconciliation of bank passbook balance…

Q: Balance per bank statement, 4/30/21 NSF check returned with 4/30/21 bank statement…

A: Solution: Adjusted cash balance = bank statement balance + Deposits in transit - outstanding…

Q: SMU Tax Services gathered the following information to prepare their bank reconciliation for the…

A: Cash Balance according to the bank statement at Oct. 31, 2021 = $11,935Cash Balance according to the…

Q: rish, Inc. had the following bank reconciliation at March 31, 2020: Balance per bank statement,…

A: Bank reconciliation statement: Bank statement is prepared by the bank. The company maintains its own…

Q: ABC Co. is preparing its October 31, 2020 bank reconciliation. The following information was…

A: Bank reconciliation statement is prepared in order to find the causes due to which the balance as…

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Below is the bank reconciliation of CPA Company for July 2021:
Balance per Bank, July 31, 2021
Add: Deposit in Transit
P 750,000
120,000
P 870,000
Total
Deduct: Outstanding Checks
Erroneous Bank Credit
Cash Balance per books, July 31, 2021
P 140,000
50,000
190,000
P 680,000
The bank statement for August 2021 contains the following data:
Total deposits – P550,000; Total charges (including non-sufficient fund check of P40,000 and service
charge of P2,000) – P480,000. All outstanding checks on July 31, 2021 including the bank credit were
cleared in the bank in August 2021. There were outstanding checks of P150,000 and deposits in transit of
P190,000 on August 31, 2021.
How much were the cash disbursements per books during August 2021?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following information pertains to EXCELLENT Company as of December 31, 2020: Cash balance per bank statement P4,000,000 Checks outstanding (including certified check of P100,000) 500,000 Bank service charge shown in December bank statement 20,000 Error made by EXCELLENT in recording a check that cleared the bank in December (Cieck was drawn for P100,000 but recorded at P10,000) 90,000 Deposit in transit 1,300,000, What is the cash balance per ledger on December 31, 2020?
In preparing its bank reconciliation for the month of April 2019, Haskins, Inc. has available the following information. Balance per bank statement, 4/30/19 $27,280 NSF check returned with 4/30/19 bank statement 900 Deposits in transit, 4/30/19 7,000 Outstanding checks, 4/30/19 10,400 Bank service charges for April 40 What should be the adjusted cash balance at April 30, 2019? Select one: a. $23,840 b. $23,880 c. $22,980 d. $22,940
Using the following, prepare a bank reconciliation for Samtani Co. for August 31, 2020, including a proper three-line heading (please use Figure 8.6 in the text as your guide): a) The bank statement balance is $4,010 b) The cash account balance is $4,207 c) Outstanding checks amounted to $507 d) Deposits in transit are $633 e) The bank service charge is $35 f) A check for $84 for supplies was recorded as $48 in the ledger (an error in recording)
On 30 September 2022, Piston Limited had a balance in its ‘Cash in Bank’ general ledger account of $13,034.30 debit. The bank statement from ANZ bank on that date showed a credit balance of $19,495.00. A comparison of the September 2022 bank statement with the ‘Cash in Bank’ general ledger account and the bank reconciliation for August 2022 revealed the following facts (ignore GST): Ref: (1) Electronic Funds Transfers (EFTs), totalling $1,770.10, from the August 2022 bank reconciliation has still not been presented to the bank. (2) Cash sales of $2,945 on 20 September 2022 were deposited in the bank. The general journal entry was incorrectly recorded as $2,954. Piston Limited’s bank statement showed the correct amount of $2,945 was recorded. (3) From the review of the September 2022 cash journals, it was established that outstanding EFTs totalled $3,567.10, and outstanding deposits were $1,190.40. (4) On 24 September 2022 Piston Limited made a payment (EFT…
Your Corporation's unadjusted bank balance at September 30, 2021 is $400. The following information is available for the bank reconciliation. $900 $300. Deposits in transit, $500 Outstanding checks, $300 Bank service charges, $75 Bank collected an accounts receivable for Your Company, NSF check written by one of Your Company's customers, What is Your Company's true cash balance?
Consolidated Paper has just completed its bank reconciliation for the month of Febrruary 2023 as shown below. Balance per bank....... Add: Deposit in transit......... O Less: Outstanding checks... $16,200 2,600 (900) Balance per books...... Add: Interest earned. Less: Bank service charge.... Add: Error in posting payment of accounts receivable Reconciled balance........ $17,900 customer............ $17,400 200 (100) 2 3 Reconciled balance............... 4 5 a. Prepare the adjusting entry (debits and credits) that is needed as a result of the bank reconciliation. 6 b. What cash balance will Consolidated Paper report on its February 28, 2023 financial statements 7 8 9 0 1 400 $17,900
please answer
3. From the following information relating to Bank Şobar, prepare Income Statement for the year ended 31st March 2020. Show the calculations separately. (PREPARED SHEDULES) Particulars Interest on overdraft Establishment Interest on bill discounted R.O 550,000 70,000 300,000 Rent Salaries 25,000 15,000 Interest on savings Printing and stationery Interest on fixed deposits Commission Interest on loan Interest on Borrowing Interest on cash credit Administration's fees Postage and telegram Maintenance expenses General Reserve 80,000 5,900 55,000 90,000 45,000 42,000 275,000 7,000 2,500 8,400 50,000 30.000 Loan Additional information: 1. Provide OMR 50,000 for doubtful debts 2. Provide OMR 120,000 for taxation 3. Rebate on bills discounted on 31-03-20 OMR 60,000 4. Dividend proposed to pay OMR 30,000 5. Last year Profit OMR 100,000
The following information is produced by comparing the cash deposits and withdrawals recorded by the M&N Windows Ltd for the month with their most recent bank statement received at 30 June 2019:a. M&N Windows Ltd’ cash at bank ledger at 30 June 2019 is: $75,864b. Credit balance as per bank statement as at 30 June 2019 is: $101,160c. Bank statement shows an electronic transfer from a customer of $3,864d. Deposits in transit, $12,540e. Interest earned on bank account, $75f. Unpresented cheques, $37,407g. Service charge included in bank statement, $150h. Cheque for insurance expense, $5,370 incorrectly recorded in books as $5,910i. A dishonoured cheque written by a client Jim Smith, $3,900The entity doesn’t use special journals for record keeping. The entity prepares bank reconciliation statement at the end of each month.Required:a) Prepare a bank reconciliation statement for M&N Windows Ltd at 30 June 2019. b) Discuss why a bank reconciliation is still necessary even most of…
What is the cash balance per books at November 30, 2021?
How much is the correct cash balance on December 31, 2020? * Mr. Matee Nik, the accountant of Tikoy Inc. prepared the following bank reconciliation for November 2020: Balance per ledger Bank service charges P2,372,000 (2,000) Adjusted balance P2,370,000 Balance per bank statement P2,100,000 Deposit in transit 300,000 Outstanding checks Adjusted balance (30,000) P2,370,000 Information gathered for December 2020 are as follows: Bank Book Checks recorded 2,300,000 2,360,000 Deposits recorded Collection by bank (P400,000 note plus interest) NSF check returned with Dec. 31 1,620,000 1,800,000 420,000 bank statement 10,000 Service charge 2,000 Balances 1,828,000 1,810,000
The bank statement for ABC Corp. shows a balance of $14300. Use the following reconciling items to determine the company's adjusted (corrected) book balance. Outstanding checks: $600 Deposits in Transit: $590 Interest earned on deposits: $23 EFT's from ABC Corp Customers: $1370 Customer's check returned due to NSF: $1550 A