Deposits shown on the bank statement but not on the cash ledger represents collectionsof accounts receivable.Requirement: Prepare bank reconciliation.Solution:Bank ReconciliationFor the month endedBalance per books, endAdd: Credit memosLess: Debit memosAdd/Less: Book errorsBal. per bank statement, endAdd: Deposits in transit (DIT)Less: Outstanding checks (OC)Add/Less: Bank errorsAdjusted balanceAdjusted balance6 of 6 YOU CANDO ITThe accounting records and bank statement of Entity A show the followinginformation.SUBSIDIARY LEDGERCASH IN BANK – FCB CURRENT ACCOUNTDateDescriptionDebitCreditBalance6/1Balance forwarded881,000750,200530,200826,0001,496,00080,000 1,416,000380,000 1,036,0001,196,000130,800220,0006/11Check #11136/15Check #1114295,800670,0006/16DepositDepositCheck #11156/226/246/28Check #11166/29Deposit160,000|FirstCitizens BankAccount Number5022-0007-00Account TypeFCB CURRENT ACCOUNTBranchVILLAMOR BRANCHPeriod Covered6/1/2019 – 6/30/2019DateDescriptionRefDetailsDebitCreditBalanceBALANCE FORWARDED881,000.005/10/2019CASH DEPOSIT050PASAY350,000.001,231,000.005/11/2019 PAYMENT0102,000.001,229,000.005/12/2019 CHECK ENCASHMENT090CK#1114220,000.001,009,000.005/15/2019CHECK DEPOSIT040PASAY295,800.001,304,800.005/18/2019PAYMENT01150,000.001,254,800.005/26/2019CASH DEPOSIT051670,000.001,924,800.006/24/2019CHECK ENCASHMENT091CK#111580,000.001,844,800.006/26/2019CHECK ENCASHMENT092CK#1113130,000.001,714,000.005/29/2019CHECK DEPOSIT041PASAY410,000.002,124,000.00Additional information:The payments of 2,000 and P50,000 shown on the book statement pertain to the cost ofcheckbook requested from the bank and the monthly amortization of a bank loan,respectively. The loan payment includes payment for the interest of P8,000.

From the given Information we have obtained, (1) Credit Memos = Check/Cash Deposits directly…

The accounting records and bank statement of Entity A show the following information. SUBSIDIARY LEDGER CASH IN BANK – FCB CURRENT ACCOUNT Description Debit Credit Balance Balance forwarded 881,000 Chock #1113 130 800 760 300

The accounting records and bank statement of Entity A show the following information. SUBSIDIARY LEDGER CASH IN BANK – FCB CURRENT ACCOUNT Description Debit Credit Balance Balance forwarded 881,000 Chock #1113 130 800 760 300

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

Deposits shown on the bank statement but not on the cash ledger represents collections
of accounts receivable.
Requirement: Prepare bank reconciliation.
Solution:
Bank Reconciliation
For the month ended
Balance per books, end
Add: Credit memos
Less: Debit memos
Add/Less: Book errors
Bal. per bank statement, end
Add: Deposits in transit (DIT)
Less: Outstanding checks (OC)
Add/Less: Bank errors
Adjusted balance
Adjusted balance
6 of 6

YOU CAN
DO IT
The accounting records and bank statement of Entity A show the following
information.
SUBSIDIARY LEDGER
CASH IN BANK – FCB CURRENT ACCOUNT
Date
Description
Debit
Credit
Balance
6/1
Balance forwarded
881,000
750,200
530,200
826,000
1,496,000
80,000 1,416,000
380,000 1,036,000
1,196,000
130,800
220,000
6/11
Check #1113
6/15
Check #1114
295,800
670,000
6/16
Deposit
Deposit
Check #1115
6/22
6/24
6/28
Check #1116
6/29
Deposit
160,000
|FirstCitizens Bank
Account Number
5022-0007-00
Account Type
FCB CURRENT ACCOUNT
Branch
VILLAMOR BRANCH
Period Covered
6/1/2019 – 6/30/2019
Date
Description
Ref
Details
Debit
Credit
Balance
BALANCE FORWARDED
881,000.00
5/10/2019
CASH DEPOSIT
050
PASAY
350,000.00
1,231,000.00
5/11/2019 PAYMENT
010
2,000.00
1,229,000.00
5/12/2019 CHECK ENCASHMENT
090
CK#1114
220,000.00
1,009,000.00
5/15/2019
CHECK DEPOSIT
040
PASAY
295,800.00
1,304,800.00
5/18/2019
PAYMENT
011
50,000.00
1,254,800.00
5/26/2019
CASH DEPOSIT
051
670,000.00
1,924,800.00
6/24/2019
CHECK ENCASHMENT
091
CK#1115
80,000.00
1,844,800.00
6/26/2019
CHECK ENCASHMENT
092
CK#1113
130,000.00
1,714,000.00
5/29/2019
CHECK DEPOSIT
041
PASAY
410,000.00
2,124,000.00
Additional information:
The payments of 2,000 and P50,000 shown on the book statement pertain to the cost of
checkbook requested from the bank and the monthly amortization of a bank loan,
respectively. The loan payment includes payment for the interest of P8,000.

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