Direction: Compute Deposits in Transit.FORMAT TO BE USED:Deposits in transit, beginning of the month Add: Deposit made per books Total amount that should have been deposited Less: Deposits shown in the bank statement Deposits in transit, end of the month The following is taken from the books of Astro Merchandising:CASH RECEIPTSCASH PAYMENTSChkNo. 301ChkNo. 302ChkNo. 303ChkNo. 304ChkNo. 305ChkNo. 306ChkNo. 30710,00030,0004,0002,00040,000112,0006,0004.000208,000Jan-2Jan-9Jan-10Jan-16Jan-23Jan-3020,00040,00020,00080,00040,00070.000P270,000ChkNo. 308The beginning balance of cash per general ledger is P112,000.Presented below is the bank statement of Twice Bank for the month of January.Twice BankQuezon CityAstro MerchandisingAccount No.09772444 Congressional Avenue, Quezon CityJanuary 31, 2022DateDebitsCreditsBalanceDec 3160,000Mar 420,00080,000Mar 6Chk No. 30110,00070,000Mar 11Chk No. 30230,00040,00060,000100,000Mar 12Chk No. 3042,00098,000Mar 1880,000178,000Mar 19Chk No. 30540,000138,000Mar 25Chk No. 3076,000132,00040,000172,000Mar 262,000 NSF170,000Chk No. 29910,000160,000Mar 27Chk No. 306112,00048,000Mar 28100,000 CM148,000Mar 31400 DM148,400Legend:DM - Debit MemoCM - Credit MemoNSF - No Sufficient FundNote: The P400 DM represents bank service charges.The P100,000 CM represents the proceeds of bank loan.

Amount Deposits in transit, beginning of the month (Working note-2) 60000 Add: Deposit made…

FORMAT TO BE USED: Deposits in transit, beginning of the month Add: Deposit made per books Total amount that should have been deposited Less: Deposits shown in the bank statement Deposits in transit, end of the month

FORMAT TO BE USED: Deposits in transit, beginning of the month Add: Deposit made per books Total amount that should have been deposited Less: Deposits shown in the bank statement Deposits in transit, end of the month

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

100%

Direction: Compute Deposits in Transit.

FORMAT TO BE USED:

Deposits in transit, beginning of the month
Add: Deposit made per books
Total amount that should have been deposited
Less: Deposits shown in the bank statement
Deposits in transit, end of the month

The following is taken from the books of Astro Merchandising:
CASH RECEIPTS
CASH PAYMENTS
ChkNo. 301
ChkNo. 302
ChkNo. 303
ChkNo. 304
ChkNo. 305
ChkNo. 306
ChkNo. 307
10,000
30,000
4,000
2,000
40,000
112,000
6,000
4.000
208,000
Jan-2
Jan-9
Jan-10
Jan-16
Jan-23
Jan-30
20,000
40,000
20,000
80,000
40,000
70.000
P270,000
ChkNo. 308
The beginning balance of cash per general ledger is P112,000.
Presented below is the bank statement of Twice Bank for the month of January.
Twice Bank
Quezon City
Astro Merchandising
Account No.09772
444 Congressional Avenue, Quezon City
January 31, 2022
Date
Debits
Credits
Balance
Dec 31
60,000
Mar 4
20,000
80,000
Mar 6
Chk No. 301
10,000
70,000
Mar 11
Chk No. 302
30,000
40,000
60,000
100,000
Mar 12
Chk No. 304
2,000
98,000
Mar 18
80,000
178,000
Mar 19
Chk No. 305
40,000
138,000
Mar 25
Chk No. 307
6,000
132,000
40,000
172,000
Mar 26
2,000 NSF
170,000
Chk No. 299
10,000
160,000
Mar 27
Chk No. 306
112,000
48,000
Mar 28
100,000 CM
148,000
Mar 31
400 DM
148,400
Legend:
DM - Debit Memo
CM - Credit Memo
NSF - No Sufficient Fund
Note: The P400 DM represents bank service charges.
The P100,000 CM represents the proceeds of bank loan.

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