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Lecture%20Notes_Proof%20of%20Cash

The document outlines a bank reconciliation process for cash, detailing the beginning and ending cash balances, receipts, and disbursements for both the company and the bank. It includes sections on errors committed in the previous and current months, along with adjustments made to correct these errors. The final adjusted cash balances for both the bank and the book are presented, showing consistency between the two records.

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mattdaniel.tan.acct
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2 views9 pages

Lecture%20Notes_Proof%20of%20Cash

The document outlines a bank reconciliation process for cash, detailing the beginning and ending cash balances, receipts, and disbursements for both the company and the bank. It includes sections on errors committed in the previous and current months, along with adjustments made to correct these errors. The final adjusted cash balances for both the bank and the book are presented, showing consistency between the two records.

Uploaded by

mattdaniel.tan.acct
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PROOF OF CASH

A four-column bank reconciliation of Beginning and


Ending balances of CASH as well as of Cash
RECEIPTS and DISBURSEMENTS during the period
made by the Company and by the Bank
PROOF OF CASH
BEGINNING CASH RECEIPTS DISBURSEMENTS ENDING CASH
BOOK (Last month) ( Current month) ( Current month ) (Current month)

UNADJUSTED BALANCE xx xx xx xx

CM, Last month xx (xx)

CM, Current month xx xx


DM, Last month (xx) (xx)

DM, Current month xx (xx)


Book Errors xx/(xx) xx/(xx) xx/(xx) xx/(xx)

ADJUSTED BALANCE xx xx xx xx
PROOF OF CASH
BEGINNING CASH RECEIPTS DISBURSEMENTS ENDING CASH
BANK (Last month) ( Current month) ( Current month ) (Current month)

UNADJUSTED BALANCE xx xx xx xx

DIT, Last month xx (xx)

DIT, Current month xx xx


OC, Last month (xx) (xx)

OC, Current month xx (xx)


Bank Errors xx/(xx) xx/(xx) xx/(xx) xx/(xx)

ADJUSTED BALANCE xx xx xx xx
1.ERRORS COMMITTED LAST MONTH
CORRECTED in BEGINNING CASH RECEIPTS DISBURSEMENTS ENDING CASH
CURRENT MONTH (Last month) ( Current month) ( Current month ) (Current month)

OVERSTATED RECEIPTS (xx) - (xx) -

OVERSTATED DISBURSEMENTS xx (xx) - -

UNDERSTATED RECEIPTS xx (xx) - -

UNDERSTATED DISBURSEMENTS (xx) - (xx) -

NOT YET CORRECTED in BEGINNING CASH RECEIPTS DISBURSEMENTS ENDING CASH


CURRENT MONTH (Last month) ( Current month) ( Current month ) (Current month)

OVERSTATED RECEIPTS (xx) - - (xx)

OVERSTATED DISBURSEMENTS xx - - xx

UNDERSTATED RECEIPTS xx - - xx

UNDERSTATED DISBURSEMENTS (xx) - - (xx)

Errors Committed Last Month and Corrected Last Month = NO Effect / NO Adjustment
2.ERRORS COMMITTED in CURRENT MONTH
CORRECTED in BEGINNING CASH RECEIPTS DISBURSEMENTS ENDING CASH
CURRENT MONTH (Last month) ( Current month) ( Current month ) (Current month)

OVERSTATED RECEIPTS - (xx) (xx) -

OVERSTATED DISBURSEMENTS - (xx) (xx) -

UNDERSTATED RECEIPTS - - - -

UNDERSTATED DISBURSEMENTS - - - -

NOT YET CORRECTED in BEGINNING CASH RECEIPTS DISBURSEMENTS ENDING CASH


CURRENT MONTH (Last month) ( Current month) ( Current month ) (Current month)

OVERSTATED RECEIPTS - (xx) - (xx)

OVERSTATED DISBURSEMENTS - - (xx) xx

UNDERSTATED RECEIPTS - xx - xx

UNDERSTATED DISBURSEMENTS - - xx (xx)

UNDERSTATEMENT of Receipts or Disbursements Committed in Current Month


and Corrected in Current Month = NO Effect / NO Adjustment
April
RECEIPTS DISBURSEMENTS
BANK BEG.(March 31) END (April 30 )
( April ) ( April )

UNADJUSTED CASH BALANCE 2,100,000 5,500,000 4,340,000 3,260,000

DIT, March 31 120,000 (120,000)

DIT, April 30 480,000 480,000

OC, March 31 (250,000) (250,000)

OC, April 30 600,000 (600,000)

Understatement March receipts corrected in April 10,000 (10,000) - -

Erroneous April disbursements corrected in April - (20,000) (20,000) -

ADJUSTED CASH BALANCE 1,980,000 5,830,000 4,670,000 3,140,000


RECEIPTS DISBURSEMENTS
BOOK BEG.(March 31) END (April 30 )
( April ) ( April )

UNADJUSTED CASH BALANCE 2,000,000 5,817,000 4,692,500 3,124,500

CM, March 31 5,000 (5,000)


CM, April 30 3,000 3,000

DM, March 31 (1,500) (1,500)

DM, April 30 2,500 (2,500)

Erroneous March receipts corrected in April (23,500) - (23,500) -

Understatement April receipts corrected in May - 15,000 - 15,000

ADJUSTED CASH BALANCE 1,980,000 5,830,000 4,670,000 3,140,000

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