BANK RECONCILIATION

EXERCISES
For the month of May 2016, Tope Company issued the following checks
as recorded in its Cash Disbursement Journal:
The cash receipts journal of Malaya Merchandising reflected the
following collections for the month of April 2016:
Identify whether the following independent transaction is a book or a
bank reconciling. In addition, determine the amount of the error and
state whether the amount will be added or deducted in the preparation
of the bank reconciliation(use adjusted method):
1. Eagle Repairs received P1,500 from Jane. The bookkeeper recorded
the amount as P500.
2. Nation Bank collected from the customer of Eagle the sum of
P5,000 representing payment of the said customer to Eagle. No
entry was made in the books of Eagle.
3. The bank teller deducted CK 123 for P3,500 from the account of
Eagle. The said check was issued by Egles Company a different
depositor of the bank.
4. The bookkeeper of Eagle recorded Check No. 345 in the Cash
Disbursement Journal as P5,205. The correct amount of the check was
P5,250.

5. The deposits of Eagle earned interest of P100 for the month. Eagle
does not have knowledge of interest earned until it receives the bank
statement.
Bank reconciliation problem:
The bank statement for Juan Company shows a balance per bank of P16,907.45 on April 30,2015.
On this date the balance of cash per books is P12,589.45.
Additional information are provided below:
Deposits in transit: April 30 deposit (received by the bank on May 1) P1,201.40
Outstanding checks:
No. 253-P1,000.00
No. 257-P1,401.30
No. 260-P1,502.70
Errors: Juan wrote check no. 543 for P1,336.00 and the bank correctly paid that amount.
However, he recorded the check as P1,363.00.
Bank memoranda:
Debit– NSF check from Pedro P525.60 .
Debit– Charge for printing company checks P40.00
Credit – Collection of note receivable for P2,074 plus interest earned of P100, less bank collection fee of P20.00.
Required: Prepare a bank reconciliation statement using the adjusted method.
Hint:
Bank Debit Memo are deductions made by the bank to the account of the depositor
Bank Credit Memo are additions made by the bank to the account of the depositor
Bank reconciliation problem:
The bank statement for Juan Company shows a balance per bank of
P16,907.45 on April 30,2015.
On this date the balance of cash per books is P12,589.45.
Additional information are provided below:
Deposits in transit: April 30 deposit (received by the bank on May 1)
P1,201.40
Outstanding checks:
No. 253-P1,000.00
No. 257-P1,401.30
No. 260-P1,502.70
Errors: Juan wrote check no. 543 for P1,336.00 and the bank correctly paid
that amount.
However, he recorded the check as P1,363.00.
Bank memoranda:
Debit– NSF check from Pedro P525.60 .
Debit– Charge for printing company checks P40.00
Credit – Collection of note receivable for P2,074 plus interest earned of
P100, less bank collection fee of P20.00.
Required: Prepare a bank reconciliation statement using the adjusted
method.
Hint:
Bank Debit Memo are deductions made by the bank to the account of the
depositor
Bank Credit Memo are additions made by the bank to the account of the
depositor