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Congratulations to the Graduates of Year
2011!
Proof of Cash God bless you all, you made your family and friends
December 4, 2009 josephmestrada 12 comments proud! Good luck to your upcoming review, CPA
Exams, and career!
Proof of Cash or Four Column Reconciliation
Ok, sa topic ng cash, ito ang masasabi ko na ultimate in terms of difficulty. Kelangan ng NEW Problem Test Page
understanding ng entries na ginagawa ng company at ng book. Kelangan din ng application ng I created a new page called "Problem Tests". I'll
logic. post problems, subukan nyong sagutin. Post nyo
yung sagot nyo by commenting doon sa page na
Una sa lahat, ano ba ang Proof of Cash? Every month, gumagawa ang kumpanya ng Bank yun. :) Minsan, ididiscuss ko din yung mga items na
Reconciliation (bank recon in other words). Ngayon, ang preparation ng typical bank recon, nandun sa Lectures ko.
nagpapakita lang ng effect nya sa total balance ng isang Cash in Bank account. When the
company smells something fishy regarding the custodian or in more technical terms, when the
company believes that fraud exists in handling of the cash balances, dapat maging mas Kuya Joseph’s Mini Lectures
detalyado ang ginagawang reconciliation wherein every transaction na nangyayari sa cash,
ippresent in details. That is where Proof of Cash comes into scene.

Ok, let’s start. Ipapakita ko muna sa inyo yung problem, then yung solution ko, tapos,
ieexplain ko sa inyo kung bakit ganoon.

Bakit nga ba baliktad sa bank?

Bank Credit – addition to bank balance

Bank debit – deduction from bank balance

kasi, bilang “customers” ng bank, pag nagdedeposito tayo ng pera sa banko, ang treatment
nila dun ay liability sa depositor. So, pag sinabing bank “credit” ibig sabihin nadagdagan yung
liab nila sa depositor, nadagdagan ang balance ng cash ng depositor and bank “debit” kasi
nbawasan yung liability nila sa depositor ksi nabawasan yung pera ng depositor sa bank.

pag may tanong itanong lang po. sunod yung sinasabi kong bank errors at nsf checks.

PROBLEM NAGBABALIK!!!
Ako po ay nagbabalik at nangangakong madalas na
Balance per company’s ledger
magrereply! Maglalaan na ko ng oras sa blog ko po
Nov. 30 520,000
para mas marami tayong matulungan! I hope wag
Dec. 31 700,000
po kayo magsawang sumubaybay! Post lang ng
Total debits to cash per company’s books tanong then I'll get to it as soon as possible.
(recorded receipts) during December 2,500,000 Sa mga nagtanong noong nakaraan na hindi ko
Total credits to cash per company’s books nasagot, nais ko pong hingiin ang inyong
paumanhin at paunawa, masyado lamang po ako
(recorded disbursements) during December 2,320,000
busy noon at hindi nakapaglaan ng oras.
Bank Balance
Nung nabasa ko yung mga comments nyo kasi,
Nov. 30 537,400
medyo nakunsensya ako at nainspire na maglaan
Dec. 31 678,200
ng oras para sa blog despite the busy schedule :P
December receipts recorded by Bank
Salamat po!!
during December 2,474,400

December disbursements recorded by Bank

during December 2,333,600 Join our new Facebook Group!
If you have a facebook account, you could join our
Deposits in Transit new group at:
Nov. 30 160,000 Kuya Joseph Lectures.
Dec. 31 225,000
Note: Please don't post your questions in our
Oustanding Checks group's page. Post questions only here in our blog.
Privacy & Cookies:
Nov. 30 143,000 This site uses cookies. By continuing to use this website, you agree to their use. I'll use it to update everyone forClose and accept
new lectures
To Dec.
find out more, including how to control cookies, see here: Cookie Policy
31 118,000 posted or questions answered. Follow

Bank Service Charges(recorded by the Thanks!!

depositor in the month following the month
of charge)
November 1,200 IMPORTANT NOTE
December 800 Hello po! To those submitting questions, as much as
possible, please quote the source of the problem if
Bank credit memo for customer’s note you got it from a book (title of the book/author) to
collected by bank in November avoid plagiarism.
(face value 60,000plus interest 600),
recorded by the company only Just so you all know, I either compose my own
in december. 60,600 problems or I get from books and quote the source.

Bank credit memo for proceeds of I hope you understand that it is not my intention to
bank loan granted use other people's work in this site without proper
recognition and that I don't get any monetary
by the bank on Dec. 31. 100,000
compensation or any form of benefit in doing this
Customer’s DAIF check returned by the bank blog. I do out of passion in teaching and
(recorded by the company accounting. :)
in the following month)
Returned in November 25,000
Returned in December 14,000 Paunawa :D
Sorry talaga kung hindi po ako nakakapagpost
Solution: recently, I've been very busy for the past couple of
months. I promise I'llpost new lectures as soon as I
can. :D Always check the "recent comments" or the
"recent posts", usually lumalabas dun pag may
comments ako naaapprove at nagrereply ako sa
mga katanungan. Thanks!!

Recent Comments

josephmestrada on Petty Cash Part 2

josephmestrada on Petty Cash, Part 1

josephmestrada on I’m back!

Stephanie Nodado on Petty Cash, Part 1

Kazumireik on I’m back!

Recent Posts
I’m back!
Error Correction (Sample Problem) –
counterbalancing errors
Adjusting Entries questions
Deposits in Transit & Outstanding Checks
Operating Lease
Accrual to Cash Accounting
Interest Expense
Notes Receivable/Payable

Notice po sa lahat
Hello po sa lahat, let's try to maintain a good
academic atmosphere in this blog by observing
correct usage of punctuations and capitalization of
letters. Di naman ako strict sa grammar(sentence
construction) kasi informal naman discussions natin
dito at taglish, yung sa punctuations and caps lang.
Minsan kasi mahirap intindihin yung mga
punctuations and caps.

Salamat po!!

Bagong Queries Page

If your question does not relate to any of the topics
Mga dapat tandaan:
I have published, you can post your question on the
Queries Page (yung tab na katabi ng "About").
1. Ang kinokompyut natin na ending balance ng Deposits/Withdrawals-
Receipts/Disbursements ay STRICTLY para lamang sa Deposits/Withdrawals- Sorry talaga kung di ako masyado nakakareply
Receipts/Disbursements ng current month. Lahat ng Deposits/Withdrawals- ngayon, medyo busy kasi pero soon enough, I'll be
Receipts/Disbursements ng previous months, tanggalin doon. able to answer your questions po. Nababasa ko po
2. Papanong nagiging equal ang Deposits/Withdrawals-Receipts/Disbursements ng bank at yung mga pinopost nyong tanong at isa-isa ko sila
book? Since sa transactions ng current month nga lang yung syempre dapat kung ano ang ginagawaan ng lecture.
Receipts mo sya rin ang Deposits mo at kung ano ang Disbursements mo ay sya rin ang
Withdrawal mo.
3. Gagawin mo ang ginagawa ng banko. Bakit? Kasi hindi mo naman pwedeng pakialaman ng Categories
books ng bank. (except syempre pag may bank error kasi kapag bank error, ang bank ang Accounts Receivable (with sample problem)
kusang nagcocorrect nun).
Accrual to Cash Accounting
4. Huwag isiping negative yung Disbursement/Withdrawal column. Ang pinag-uusapan kasi
dun, kung magkano yung disbursement/withdrawal mo. (gets to?) Adjusting Entries
Adjusting Entries, Part II
Sa pagpprepare ng proof of cash, take it one step at a time. Wag paghaluhaluin.
Adjusting Entries, Part III
Ok, as I will explain I will use the following terms para madescribe ang column: Adjusting Entries, sample problems
FIRST COLUMN – ito yung recon last month
AR Impairment
LAST COLUMN – ito yung recon this month
AR Impariment Follow-up
Una, gawin ang pinakamadaling part that is, ilagay sa tamang column ung mga unadjusted
Backflush Costing
balance Bank’s previous month, deposits, withdrawal, current month and book’s unadjusted
Cash & Non-Cash Items
previous month, receipts, disbursements, current month.
Cash (bank recon and cash shortage) –
Tapos, yung details na. take one step at a time. Kung gusto mo unahin yung bank tapos yung Audprob sample problem
books, gawin mo. Ikaw bahala. Basta isa isa lang.
Cash – Sample Problem
Ok unahin natin yung Closing Entries

Bank Costs and Expenses in a Business

CVP, Breakeven, Differential Analysis
Deposit in transit.
Deposits in Transit and Outstanding Checks
Ano ba ang deposit in transit. Yan ung mga payments ng customers/debtors/payor, na
katapusan ng buwan na ginawa yung payment kaya hindi na umabot yung tseke sa tamang Differential Income Analysis (follow-up)
petsa. Kung baga, sa cutoff lang may problema. Kasi ganito ang nangyari. Nagbayad yung Error Correction (Sample Problem) –
customer. Edi binigay yung cheke sa kumpanya. Pagbigay ng cheke sa kumpanya, syempre, counterbalancing errors
ang gagawin ng company, irerecord nya bookd nys. Saka nya idideposito sa banko. Ngayon, Intangible Asset
pag pasok nun sa bank, hindi naman agad maccredit yun sa account mo. It will undergo a
Intangible Assets (Goodwill, explained)
clearing process para icheck kung legitimate/genuine/negotiable ba yung cheke na diniposito
mo sa bank. It will take a couple of days bago maclear yun. So, pag na-clear, ok, iccredit na Interest Expense (and some aud prob
ng bank sa account mo yun. Kaya nagkakaroon ng deposits in transit. Narecord mo na yung advices)
receipt sa book mo pero sa banko, hindi pa. Interest Question
Inventory – Periodic and Perpetual
So, papano ang treatment nun? Ganito.
Inventory Method
PREVIOUS Month Investments (Q&A's with Alexis'
contribution :) )
Diba ang first column yun ung recon ng last month. So, since DIT sya last month, add nyo s
first column ng bank. Kiting, Explained (audit of cash)
Kasi dapat talaga, receipt nyo na sya last month pero ngayon lang na-credit sa account nyo. Margin of Safety
So since ngayon lang ncredit sa account nyo, narecord sya ng bank as “deposits this month”. E Merchandising & Manufacturing
diba nga sabi ko, yung deposits/withdrawals na icocompute natin ay para lang sa current
Notes Receivable / Payable
month, kaya ibabawas natin sa receipts column yung DIT last month.
NSF Check and Bank Error treatment in
CURRENT Month. Proof of Cash (for aud prob ppol)
Eto, sabi ko diba due to timing difference, hindi tuloy naadd ng bank sa inyo yung amount na Operating Lease
yun kaya hindi nagreflect sa statement nyo. So ano dapat gawin? Eh di iadd nyo sa Deposits
Petty Cash, Part 1
column ng bank para tumugma ang receipts at deposits nyo.
Petty Cash, Part 2
Outstanding checks.
Petty Cash, Part 3
Pareho lang ng logic nito sa Deposit in transit. Yun nga lang, dito naman, tayo ang
Postal Cash/Money Order
magdidisburse/gagastos/payor. Pareho din ng proseso ang ia-undergo ng cheke and all.
Proof of Cash
Previous month
Receivable: Factoring
Sa previous month, or first column, syempre deduct to kasi disbursement talaga natin sya for
november. Pero, since hindi pa sya nareflect sa statement noong November, malamang sa Receivable: Factoring (with questions)
malamang, naisama sya sa withdrawals total nyo for december. So, hindi ito nabibilang doon Receivables Questions and Answers
kaya dapat tanggalin. Deduct from Withdrawals column. Reversing Entries
Current month Uncategorized
Sabi natin, ang outstanding check ay ang mga cheke na hindi pa nadedebit/nababawas Warranty Liability (part 1)
(tandaan baliktad sa banko ha, paliwanag ko mamaya kung bakit). So, hindi pa sya kasama sa Warranty Liability (part 2)
withdrawal. So, idadagdag natin sya sa withdrawals column for the month. At syempre, bawas
Warranty Liabilty (part 3)
sya sa december 30 column kasi nga disbursement to.

Maliwanag na sa sikat ng buwan ang Bank?

Archives
Book June 2019

Bank Service Charges March 2011

Ang bank service charge ay ang mga amounts na binabawas sa account natin kabayaran sa July 2010
serbisyo ng banko sa pagtatago ng pera natin. Considered as expense to sa books. Ok. Simple February 2010
lng nman to.
January 2010
Previous month. December 2009
Pareho din ng logic nito sa DIT/OC, timing difference ang dahilan ng mga ginagawa sa proof of November 2009
cash. So, sa first column natin, since kabawasan sa account natin at nalaman lang natin sa
current sttement na may bank service charge pala noong nakaraang buwan, edi ibawas natin
sa column ng previous month at IBAWAS din sa column ng disbursement. Bakit? Eh kasi hindi Search
naman sya disbursement this month, noong nakaraang buwan sya disbursement. Ang total na
pinaguusapan sa receipts/disbursement columns nyo sa isang proof of cash ay ang Advertisements
receipts/disbursements lang ng current month.

Current month
So, sa current month, i-ADD ito sa disbursement s column nyo kasi disbursement sya this
month. At IBAWAS sa Dec. 30 column dahil disbursement/cash gastos sya. Tandaan ah,
huwag isiping ang buong disbursement column ay negative.

Bank Credit memo.

Pag sinabing “bank credit memo” ito yung mga DAGDAG sa account mo dahil sa koleksyon ng
banko from customers and some other transactions na nakadagdag sa bank balance mo na
hindi mo alam kaya pinapaalam ng bank sayo. Kung bakit credit memo ang tawag sa knya eh
dagdag naman sya, papaliwanag ko mamaya. So, same logic po.

Previous month.
Ang bank credit memo na dapat ay dagdag noong nakaraang buwan na ngayon mo lang
buwan naidagdag sa receipts mo ay magccause ng overstatement ng receipts mo for the
month of december (current month) at understated naman ang cash balance mo for REPORT THIS AD

november (previous month) so, sa first column, ADD para hindi na understated ang cash
balance mo nuong november. Sa Receipts column naman, ibawas kasi nga pang-previous
month receipts sya. Hindi sya pang current month.

Current Month
Sa receipts column, dagdag, kasi nakita mo lnag sa bank statement na may dagdag ka pala at
hindi mo pa sya nairerecord sa book mo. Tapos since dinagdag mo sya sa receipts mo, may
effect sya sa last column so idagdag din.

NSF checks
Muli, ng NSF check ay ang chekeng tumalbog. Dito, ang pinag-uusapan ay cheke ng customer
ah.

Previous month
Ang chekeng tumalbog, binabalik sa kumpanya yung cheke mismo at may tatak na “No
Sufficient Fund”. Diba koleksyon to mula sa customer? So, ang gagawin ng kumpanya,
irereverse nya yung naentry nya nung nagbayad ang customer so ang entry nya:

(dr) Accounts receivable xxx

(cr) cash xxx

Since credit yung cash, papasok sya sa ledger as disbursement at HINDI kabawasan sa
receipts. Tandaan yun ah. Kasi usually mababasa yang credit to cash na yan as disbursement
lalo na pag computerized ng system mo.
Ang nangyari naman dito, ito yung mga NSF checks na tumalbog nung end of the month kaya
dumating na satin yung tumalbog na cheke the next month at nairecord din nung sumunod na
buwan pero tumalbog talaga sya noong nakaraang buwan.

O, para medyo magulo, papano kung ang sabi “a collection last month which was proven NSF
this month”, kelan sya icoconsider na nsf, nung previous or current month? Edi sa CURRENT
MONTH. Pag nsf check pinaguusapan, ang iisipin nyo lang kung kelan tumalbog para hindi
kayo maguluhan.

Previous month
Ok, so ang gagawin, since para talaga sya sa previous month pero ngayon lang nabawas sa
cash in bank account natin, ibawas natin sya sa NOVEMBER column. At since nakarecord sa
ledger balance mo na disbursement sya this month, pero pang previous sya, ibawas sa
disbursement column. Malinaw?

Current month
Since ngayong buwan sya kabawasan, iccredit mo yung cash mo so, dagdag sya sa
disbursement column at since disbursement sya, ibawas sya sa dec. 30. Column

Sample Problem Source: Intermediate Accounting Vol. 1 by Robles & Empleo

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Proof of Cash

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