Transcribed Image Text:Activity 2
Assume the following circumstances for Peter Plumbing Company, a small business located in
Taguig.
1. After all, the posting is up to date, at the end of July 31, the book balance shows P32,760,
and the bank statement balance shows P77,040.
2. Check 5523 for P9,620 and 6547 for P10,000 are outstanding.
3. Check 5386 for P2,000 is removed from the bank account correctly but is recorded on the
accounting records for P1,760. This was in payment of dues. The effects of this transaction
resulted in an error of P320 that must be deducted from the company's book balance.
4. The July 31 night deposit of P34,300 was delivered to the bank after hours. As a result,
the deposit is not on the bank statement, but it is on the financial records.
5. Upon review of the bank statement, an error is uncovered. A check is removed from the
account from Feeter for P240 that should have been removed from the account of another
customer of the bank.
6. In the bank statement is a note stating that the bank collected P60,000 in charges
(payments) from the credit card company as well as P1,800 in interest. This transaction
is on the bank statement but not in the company's financial records.
7. The bank notified Feeter that a P2,200 check was returned unpaid from customer Berson
due to insufficient funds in Berson's account. This check return is reflected on the bank
statement but not in the records of Footer.
8. Bank service charges for the month are P80. They have not been recorded on Feeter's
records.
Definition Definition Document prepared to identify any discrepancies between the passbook, which logs bank transactions, and the cash book, where a business tracks its own cash and bank transactions, so that corrective measures may be taken to reconcile the differences.
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