SSC-R – Manila Cash and Cash Equivalents / Bank Reconciliation G.

Ong
Test 1: Theory – Multiple Choice: (1 point each)
1. D 5. B 9. C 13. D 17. B
2. A 6. A 10. A 14. A 18. C
3. C 7. D 11. B 15. B 19. A
4. A 8. B 12. A 16. C 20. C
Test 2: Problem Solving: (2 points each)
1. P 450,000 6. P 3,120,000 11. P 1,000 16. P 62,500 Debit
2. P 1,000,000 7. P 2,220,000 12. P 1,140 17. P 4,500
3. P 350,000 8. P 1,830,000 13. P 14,702.70 18. P 630,000
4. P 15,000 9. P 120,000 14. P 2,251.40 19. P 445,000
5. P 4,815,000 10. P 84,000 15. P 134,248.00 20. P 46,077.00
1. P 450,000
Cash on Hand P 500,000
No Sufficient Fund (NSF) customer check (50,000)
Correct cash on hand P 450,000
The cash on hand includes
• A customer dated check of P100,000, since it is dated, therefore it should be included.
• No Sufficient Fund (NSF) customer check of P50,000, to be deducted, it’s not cash of the company, this is
receivable.
• Postal money order of P40,000, part of cash, therefore it should be included.

2. P 1,000,000
A check for P200,000 was drawn against Union Bank account, recorded dated December 26, 2017, delivered to the
payee December 31, 2017. Since it’s dated and delivered on December 31, 2017, therefore it is released check.

3. P 350,000
EBC-PCIB Current account #2666 P 400,000
EBC-PCIB Current account #3168 (50,000)
Correct balance for EBC-PCIB account P 350,000
Since the two accounts are maintained in one and the same bank, therefore, offset is allowed.

4. P 15,000
Petty Cash Fund P 20,000
Unreplenished PCF (recorded as expenses) (2,000)
Employee’s check (reported as receivable (3,000)
Petty cash fund, December 31, 2013 P 15,000

5. P 4,815,000
Cash on Hand P 450,000
Petty cash fund 15,000
Correct balance for EBC-PCIB account 350,000
Union Bank checking account 1,000,000
Treasury bills – 90 days 3,000,000
Cash and Cash Equivalent P 4,815,000

6. P 3,120,000
Book Bank
Unadjusted balance P 3,450,000 Unadjusted balance P 2,735,000
NSF check (150,000) Deposit in transit 880,000
Dishonored note (300,000) Outstanding checks (495,000)
Interest expense (10,000)
Bank service charge (5,000)
Understated check received 45,000
Error on check no. 777 (90,000)
Error on check no. 780 (29,700)
Bank charges (4,300)
Note collected by bank 200,000
Interest income 20,000
Bank charges (6,000)
Adjusted balance P 3,120,000 P 3,120,000

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SSC-R – Manila Cash and Cash Equivalents / Bank Reconciliation G. Ong
7. P 2,220,000
Book Book
Balance May 31 P 2,372,000 Unadjusted balance, June 30 P 1,810,000
Service charge, May 31 (2,000) Note collected by bank 400,000
Adjusted balance, May 31 P 2,370,000 Interest from note 20,000
June deposits recorded by book 1,800,000 NSF check (10,000)
Total P 4,170,000 Adjusted balance P 2,220,000
June checks recorded by book (2,360,000)
Unadjusted balance, June 30 P 1,810,000

8. P 1,830,000
Bank
Balance May 31 (squeezed) P 1,830,000
Deposit in transit, June 30, (schedule 1) 480,000
Outstanding checks, June 30, (schedule 2) (90,000)
Adjusted balance P 2,220,000

Schedule 1:
Deposit in transit, May 31 P 300,000
Book debits, June 1,800,000
Total to be acknowledge by bank P 2,100,000
Bank credit, June P 2,040,000
Note collected by bank, June (420,000) (1,620,000)
Deposit in transit, June 30 P 480,000

Schedule 2:
Outstanding checks, May 31 P 30,000
Book credit, June 2,360,000
Total to be acknowledge by bank P 2,390,000
Bank debits, June (2,300,000)
Outstanding checks, June 30 P 90,000

9. P 120,000
Deposit in transit, May 31 (squeezed) P 120,000
Book debits, June P 1,154,800
Understated customer’s check 2,700 1,157,500
Total to be acknowledge by bank P 1,277,500
Bank credit, June P 1,300,000
Unrecorded deposit 7,500
Note collected by bank, June (180,000) (1,127,500)
Deposit in transit, June 30 P 150,000

10. P 84,000
Outstanding checks, May 31 P 67,000
Book credits, June P 1,123,500
Service charge, May (4,500)
NSF check, May (56,000) 1,063,000
Total to be acknowledge by bank P 1,130,000
Bank debit, June P 1,100,000
Service charge, June (6,000)
NSF check, June (48,000) (1,046,000)
Outstanding checks, June 30 P 84,000

11. P 1,000
Deposits in transit at August 31 P 4,000
Deposits recorded by bank during August 32,000
Acknowledged by bank 36,000
Book Receipts in August (35,000)
Deposits in transit at July 31 P 1,000

12. P 1,140
Outstanding checks, 07/31 P 640
Book payment in August 34,900
To be acknowledged by bank. 35,540
Checks cleared during in August (34,400)
Outstanding checks, 08/31 P 1,140

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SSC-R – Manila Cash and Cash Equivalents / Bank Reconciliation G. Ong
13. P 14,702.70
14. P 2,251.40
15. P 134,248.00
Book Bank
Balance 10/31 P 124,379.40 P 124,611.50
NSF (1,381.40)
Notes collected by bank 12,000.00
Interest 120.00
Service charge (150.00)
Deposit in transit 11,428.70
Customer check 3,274.00
Outstanding check (5,066.20)
Error debit by book (720.00)
Adjusted balance P 134,248.00 P 134,248.00

Added items P 12,120.00 P 14,702.70

Deducted items P (2,251.40) (5,066.20)

Bank
Unadjusted balance October 31 P 124,611.50
Deposit in transit P 11,428.70
Undeposited collection 3,274.00 14,702.70
Outstanding checks (5,066.20)
Adjusted balance P 134,248.00

Book
Unadjusted balance October 31 P 124,379.40
NSF check P (1,381.40)
Bank charges (150.00)
Understated payment (720.00) (2,251.40)
Note collected by bank P 12,000.00
Interest from note 120.00 12,120.00
Adjusted balance P 134,248.00

16. P 62,500 Debit

Balance per book, December 31 P 852,400
Notes collected by bank 90,000
Interest collected by bank 3,500
Understated payment check #759 (4,500)
NSF check (25,000)
Service charge (1,500)
Adjusted book balance, December 31 P 914,900

Since the unadjusted book balance of P852,400 should be adjusted to P914,900, therefore cash in bank account
should be debited by P62,500.

17. P 4,500
Book
Balance per bank statement, June 30 P 54,780
Add: Deposits in transit P 13,425
Bank error – deposit not recorded 600 14,025
P 68,805
Deduct: Outstanding checks (9,885)
Corrected bank balance P 58,920

Balance per books, June 30 P 68,757

Add: Book error - check no. 748 (correction) P 1,500
Customer note collected by bank 4,629 6,129
P 74,886
Deduct: Dishonored note P 14,265
Book error – improperly recorded deposit 195
NSF check 1,296
Bank service charges 210 15,966
Adjusted balance P 58,920

Book error - check no. 748 (correction) P 1,500

Check no. 748 correct amount 3,000
Amount recorded upon issuance P 4,500

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SSC-R – Manila Cash and Cash Equivalents / Bank Reconciliation G. Ong

18. P 630,000
Deposits in transit at 03/31 P 100,000
Deposits recorded by book during April (Squeezed) P 630,000
Credit memo of March (60,000) 570,000
Acknowledged by bank P 670,000
Bank Receipts in August P 600,000
Credit memo of April (80,000) 520,000
Deposits in transit at April 30 P 150,000

19. P 445,000
Outstanding checks at 03/31 P 125,000
Disbursement recorded by book during April (Squeezed) P 445,000
Debit memo of March (10,000) 435,000
Acknowledged by bank P 560,000
Bank Receipts in August P 500,000
Debit memo of April (15,000) 485,000
Outstanding checks at April 30 P 75,000

20. P 46,077
Balance according to bank statement ............................ P 80,049.50
Add undeposited cash receipts on hand ........................ 30,000.00 P 110,049.50
Deduct outstanding checks:
No. 670 ......................................................................... P4,812.00
679 ........................................................................... 5,100.00
690 ........................................................................... 6,165.00
1996 ......................................................................... 1,274.00
1997 ......................................................................... 5,200.00
1999 ......................................................................... 8,515.00 31,066.00
Adjusted balance .............................................................................. P 78,983.50

Balance according to depositor’s records........................................... 98,060.50

Add note collected by bank, with interest…………………………. 27,000.00
Adjusted balance .............................................................................. P 125,060.50

Adjusted balance according to depositor’s records ............................ P 125,060.50

Adjusted balance according to bank statement .................................. 78,983.50
Amount stolen by cashier ................................................................. P 46,077.00

or

Outstanding checks omitted from the bank

reconciliation prepared by the cashier:
No. 670 ........................................................................ P 4,812.00
679 ......................................................................... 5,100.00
690 ......................................................................... 6,165.50 P 16,077.00
Unrecorded note plus interest incorrectly recorded on
the bank reconciliation prepared by the cashier ............................ 27,000.00
Addition error in the total of the outstanding checks in the bank
reconciliation prepared by the cashier* ...................................... 3,000.00
Amount stolen by cashier P 46,077.00

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