Bank Reconciliation: Problem 1: True or False
Bank Reconciliation: Problem 1: True or False
Chapter 3
Bank Reconciliation
PROBLEM 3: EXERCISES
1. Solutions:
Requirement (a): Bank reconciliation
The bank reconciliation is prepared as follows:
ABC Co.
Bank reconciliation - Bank XYZ (Checking account # 10009087)
September 30, 20x1
Balance per books, Sept. 30 5,313 Bal. per bank statement, Sept. 30 6,200
Credit memo : Deposits in transit 2,418
Collection on note by bank 3,565
Debit memos: Outstanding checks (3,100 - 310) (2,790)
NSF check (1,860)
Bank service charge (62)
Book error: Bank error:
Overstatement of collection
(198) Erroneous debit to ABC account 930
(1,593 – 1,395)
Adjusted balance 6,758 Adjusted balance 6,758
7.Solution:
Disbursement
31-Mar Receipts 30-Apr
s
Per books 396,600 180,000 36,600 540,000
ADD: CM
March 36,000 (36,000)
April 42,000 42,000
LESS: DM
March (10,920) (10,920)
April 16,020 (16,020)
Book errors:
Page |3
No. 1
Bank reconciliation 11 points (1 point for each correct amount)
Adjusting entry 5 points (1 point each for each correct debit
and credit amount in the entry)
No. 7
Proof of cash – book 7 points (1 point for each correct amount
per line)
4 points (for adjusted balances (1 point
each)
Proof of cash – bank 6 points (1 point for each correct amount
per line)
4 points for adjusted balances (1 point
each)
Total 37 points
Page |4
2. C
Solution:
Per books, June 30 68,757 Per bank, June 30 54,780
(i) Credit memo (4,500 + 165 - 36) 4,629 (h) Deposits in transit 13,425
(d) Outstanding
(b) Dishonored check (14,265) checks (9,885)
(e) Bank charges (210) (g) Bank error 600
(f) NSF checks (1,296)
(a) Book error (4,500 - 3,000) 1,500
(c) Book error (2,895 - 2,700) (195)
Adjusted balance 58,920 Adjusted balance 58,920
10. A
Solution:
OC
12,600 31-Mar
Checks drawn
Disbursements 49,700 42,100 (squeeze)
30-Apr 5,000
* (Deposits per bank in April of ₱42,700 less ₱10,300 DIT from last month that
cleared in April) = 32,400
OR