Carefree Company is engaged in the sale of ladies accessories that are being distributed in some malls located in Metro Manila. The company's accounting assistant prepares monthly bank reconciliation. At August 31, 2021, cash receipts and disbursements per general ledger account Cash in Bank of Carefree Company are P321,000 and P265,000, respectively. The bank statement for the same month indicates that only P302,000 in deposits were received during the month and checks clearing the bank were P326,000. The July 31, 2021 bank reconciliation showed deposits in transit of P25,800. Outstanding checks at August 31, 2021 were P95,000. How much were the deposits in transit at August 31, 2021?
Carefree Company is engaged in the sale of ladies accessories that are being distributed in some malls located in Metro Manila. The company's accounting assistant prepares monthly bank reconciliation. At August 31, 2021, cash receipts and disbursements per general ledger account Cash in Bank of Carefree Company are P321,000 and P265,000, respectively. The bank statement for the same month indicates that only P302,000 in deposits were received during the month and checks clearing the bank were P326,000. The July 31, 2021 bank reconciliation showed deposits in transit of P25,800. Outstanding checks at August 31, 2021 were P95,000. How much were the deposits in transit at August 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Carefree Company is engaged in the sale of ladies accessories that are being distributed in some malls located in Metro Manila. The company's accounting assistant prepares monthly bank reconciliation. At August 31, 2021, cash receipts and disbursements per general ledger account Cash in Bank of Carefree Company are P321,000 and P265,000, respectively. The bank statement for the same month indicates that only P302,000 in deposits were received during the month and checks clearing the bank were P326,000. The July 31, 2021 bank reconciliation showed deposits in transit of P25,800. Outstanding checks at August 31, 2021 were P95,000.
How much were the deposits in transit at August 31, 2021?
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