The following information relates to ABC Company's cash transactions and bank account
for July of the current year:
• Cash balance on the books of ABC Company shows the amount of P1,719,000
• As per the bank statement received by ABC Company, the bank statement shows a
cash balance of P3,195,000.
• The following were observed to have been seen on both the bank statements and
book records of ABC Company:
o There is a Debit Memo received by ABC Company for the cost of the
requested checks in the amount of P12,000. It was not recorded on the
books of ABC Company.
o The bank statement shows a bank service charge in the amount of P10,000.
o ABC’s account was credited for the customer's promissory note, which had
a principle value of P800,000 plus the interest in the amount of P10,000.
ABC Company's books did not reflect this.
o Outstanding checks amounting to P685,000.
o A collection made on July 31 was recorded in the amount of P500,000 was
recorded by ABC Company but it was deposited on August 1.
o The bank returned a customer's check and marked it as NSF, indicating that
the customer's balance was insufficient to pay the check; it was not taken up
in the accounting books - P77,000
o On July 30, the proceeds of a bank loan were not reported in the accounting
record. The sum indicated on the bank statement is P570,000.
o There was a stolen Check with no signature that was deducted from ABC’s
account by the bank in error –P80,000.
o A Check no. 1086 was paid to a supplier which was recorded as P210,000
but was cleared with the bank an erroneous amount for P120,000.
Required: Prepare the bank reconciliation for the month using the Adjusted Balance
Method.
The following information relates to ABC Company's cash transactions and bank account
for July of the current year:
• Cash balance on the books of ABC Company shows the amount of P1,619,000
• As per the bank statement received by ABC Company, the bank statement shows a
cash balance of P3,095,000.
• The following were observed to have been seen on both the bank statements and
book records of ABC Company:
o Outstanding checks amounting to P685,000.
o ABC’s account was credited for the customer's promissory note, which had
a principle value of P700,000 plus the interest in the amount of P10,000.
ABC Company's books did not reflect this.
o There is a Debit Memo received by ABC Company for the cost of the
requested checks in the amount of P12,000. It was not recorded on the
books of ABC Company.
o The bank statement shows a bank service charge in the amount of P10,000.
o On July 30, the proceeds of a bank loan were not reported in the accounting
record. The sum indicated on the bank statement is P560,000.
o A collection made on July 31 was recorded in the amount of P400,000 was
recorded by ABC Company but it was deposited on August 1.
o The bank returned a customer's check and marked it as NSF, indicating that
the customer's balance was insufficient to pay the check; it was not taken up
in the accounting books – P67,000
o There was a stolen Check with no signature that was deducted from ABC’s
account by the bank in error –P70,000.
o A Check no. 1086 was paid to a supplier which was recorded as P210,000
but was cleared with the bank an erroneous amount for P130,000.
Required: Prepare the bank reconciliation for the month using the Adjusted Balance
Method.
