FAR-0 Bank Reconciliation and Proof of Cash Drill Problems

Problem 1.

Relax Company reported the following information in relation to its bank reconciliation for the month of
December 2022:

Balance per bank statement 5,753,000

Balance per General ledger ???
Deposit in Transit 820,000
Outstanding Checks, including 145,000 certified checks 690,000
NSF Check that was not redeposited 78,000
NSF Check that was redeposited 59,000
Bank Service Charge 24,000
Utilities of the Company directly paid by the Bank 240,000
Proceeds of Bank loan 1,500,000
Maturing Portion of the bank loan that was directly
Deducted from the bank account 300,000
Notes of the Company collected by the bank account 600,000
Payments from the customers who directly paid their
accounts to the company bank account 330,000
Correct Amount of a check recorded by the company as 90,000 9,000
Correct amount of a check recorded by the company as 6,000 60,000
Deposit that was not recorded by the company 140,000
Check of a Ralex Company that was recorded by the bank
As belonging to Relax Company 280,000
Deposit of Relax Company that was recorded by the bank as
Belonging to Ralex company 150,000
Check of Relax Company that was recorded by the bank as
Belonging to Ralex Company 80,000

Compute the following:

A. Adjusted Cash in Bank Balance as of Dec 31,2022
B. Unadjusted Cash In bank per books
Problem 2

A. Adjusted Cash Balance?

Problem 3. The following information was provided by Raigor INC. in preparing its current bank
reconciliation.
Balance per bank statement 2,000,000
Outstanding Checks with certified check of 100k 400,000
Deposit placed in banks night depository on Sept 30 600,000
Bank service charge 10,000
Proceeds of Bank loan not recorded by Raigor 100,000
Customer check charged by the bank due to lack
Counter signature 20,000
Amount erroneously credited by bank to Raigors account 50,000
A supplier check for 10,000 was incorrectly recorded by Raigor as 100,000
Notes collected by the bank for Raigor 150,000
A customer check for 150,000 was incorrectly recorded by Raigor as 15,000
NSF 25,000
Check of Rigid charged by the bank to Raigor 60,000
Deposit of Raigor credited by the bank to Rainor 100,000
Check issued by the Raigor charged by the bank to Rainor 40,000
Compute:
A. Adjusted Cash in Bank
B. Unadjusted Balance per book

Problem 4.

On October 31, of the current year, the bank statement for the checking account Taylor Company shows
a balance of P126,300, while the company record shows a balance of 123,310. Information that might be
useful in preparing s bank reconciliation is as follows:
a. Outstanding checks are 14,300 which includes a certified check for 2,000.
b. The October 31 cash receipts of 7,850 are not deposited in the bank until November 2.
c. One check written in payment of utilities for 1,370 is correctly recorded by the bank but is recorded by
Taylor as a disbursement of 1,730.
d. In accordance with prior authorization, the bank debited 6,500 directly from the checking account as
payment of interest amounting to 500 and the principal amounting to 6,000. Taylor has not yet recorded
the direct withdrawal.
e. Bank service charge 240
f. A deposit of 5,670 is recorded by the bank on October 31, but did not belong to Taylor. The deposit
should have been made to the checking account of swift company, a separate company.
g. The bank statement includes a charge of 750 for an NSF check. The check is returned with the bank
statement and the company will seek payment from the customer.

Required:
A. Prepare Bank reconciliation, using the adjusted balance method.
B. Prepare adjusting journal entries.

Problem 5.

You have gathered due the following data in the preparation of BR on December 31 for Amelia Company
a. Balance per bank 2,000,000
b. Balance per book, 1,350,000
c. Bank service charge 5,000
d. Outstanding checks 300,000
e. DIT 237,500
f. Proceeds of bank loan, December 1, discounted for 6 months at 12% not recorded on Amelia
Company’s books 470,000.
g. NSF 25,000
h. Check of Joy company charged by the bank against amelia account, 75,000.
i. Customers note collected by bank in favor of amelia
 Face amount 200,000
Interest 20,000
Total 220,000
Service Charge 2,500
Net 217,500
j. Deposit of 50,000 incorrectly recorded by bank as 5,000
k. Erroneous DM of December 28, to charge amelia account with settlement of bank loan, 100,000
L. Deposit of Joy company credited to amelia account, 150,000.

A. Prepare Bank Recon

B. Prepare Journal entries

Problem 6.
The following were provided by Bat Company for the month of June.
A. Deposits and credit memos recorded by the bank in June, including interest of P2,500;
P480,000
B. Total debits to Cash in all journals during June, P555,000
C. Deposits in transit as of May 31, P60,000
D. Interest income reflected in the May bank statement, recorded only in the books in June,
P4,000
E. Loan proceeds reflected in the May bank statement recorded only in the books in June,
P82,000
F. Direct payment to the bank by Bat Company’s customers. Bat Company was not informed.
of the said payments as of June 30, P47,000

1. The deposit in transit at June 30 is

Problem 7.

Information in relation to Ant Company’s bank reconciliation for July

*Deposits made by Ant Company in July P 950,000

* Deposits recorded by bank in July 1,020,000

* Deposits in transit, June 30, 2021 225,000

* Credit memo – loan proceeds in June 150,000

* Credit memo – loan proceeds in July 100,000

1. The amount of deposits in transit at July 30, 2021 is

Problem 8.

The following were provided by Cat Company for the month of October.
* Total book debits for the month of October P510,000
* Total bank credits for the month of October P575,000
* Deposit in transit at October 30, P39,600
* October deposits for 43,000 was recorded in the books as P34,000
* A deposit in October by Cat Company for P12,000 was recorded by the bank in another
account
* Credit memo for the month of September, P6,000 as recorded by Cat Company only in
October
* Interest income for the month of October, P3,500 has not been recorded in the books
1. The deposit in transit at the beginning of October is

Problem 9.

The following were provided by Dog Company related to December

* Checks issued by Dog Company in December, P780,000
* Checks paid by the bank in December, P820,000
* Outstanding checks, November 30, 2021, P70,000
* Debit memo – NSF checks in December, P14,000
* Debit memo – NSF checks in November, P22,000
The amount of outstanding checks at December 31, 2021 is

Problem 10.
The following were provided by Eagle related to August
* Total bank debits for the month of August, P675,000
* Total book credits for the month of August, P647,000
* Outstanding checks at July 31, P140,000
* Debit memo – July service charges/NSF checks, P28,000
* Debit memo – August service charges/NSF checks, P33,000
The amount of outstanding checks at August 31, 2021 is
Problem 11.

The accountant for the Muntinlupa Company assembled the following data:

June 30 July 31
Cash account balance 15,822 39,745
Bank statement balance 107,082 137817
Deposit in transit 8,201 12,880
Outstanding checks 27,718 30,112
Bank service charge 72 60
Collection by bank of company’s Notes
Receivable 71,815 80,900

The Bank statement and cash records show these totals:

Disbursement in July per bank statement 210,123
Cash Receipts in July per Muntinlupa Books 236,452

Prepare Proof of Cash