You obtained the following information on the current account of Par Company during your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P 306,000 . Among the bank credits in November was customer’s noted for P 100,000 collected for the account of the company

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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You obtained the following information on the current account of Par Company during your examination of its financial statements for the year ended December 31, 2021.

The bank statement on November 30, 2021 showed a balance of P 306,000 . Among the bank credits in November was customer’s noted for P 100,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were costs of checkbooks amounting to P 1,200 and a P 40,000 check which was charged by the bank in error against Par Company account. Also in November, you ascertained that there were deposits in transit amounting to P 80,000 and outstanding checks totaling P 170,000.

The bank statement for the month of December showed total credits of P 416,000 and total charges of P 204,000. The company’s books for December showed total debits of P 735,600 , total credits of P 407,200 and a balance of P485,600. Bank debit memos for December were: No. 121 for service charges P1,600 and No. 122 on a customer’s returned check marked “Refer to Drawer” for P 24,000.

On December 31, 2021 the company placed with the bank a customer’s promissory note with a face value of P 120,000 for collection. The company treated this note as part of its receipts although the bank was able to collect the note only in January 2022.

A check for P 3,960 was recorded in the company cash payments books in December as P 39,600.

How much is the adjusted book balance as at November 30, 2021?

A. P 157,200

B. P 176,000

C. P 216,000

D. P 256,000

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