Internal Control and reconciliation - Cash

Book Record Company's Record

Bank Statement
Date Reference Deposits Cr Withdrawal Dr Balance Date Particulars
1-May 30000 89500 2-May
3 15000 45000 47000 3
7 2001 10000 35000 42500 14
8 20000 55000 18
13 2003 18000 37000 22
20 40000 77000 31
22 2005 11000 66000
28 2007 5000 61000
29 Note Collected 50000 111000
30 2004 21000 90000
31 DM-BSC 500 89500

Cash Disbursements Bank

Date Particulars CH# OR# Cash Salaries Purchases Sundries
5-May 5M 2001 10000
10 2002 15000
15 2003 18000
18 2004 21000
21 Ever 2005 11000
25 2006 8000
27 FEU 2007 5000
28 UE 2008 6000
31 Dela Salle 2009 4000
98000

Cash
Date # Debit Date # Credit
1-May 30000 31-May CDB 98000
31 57000 CRB 2 125000
106500 GJ 49500

1. CM (Credit Memo)
Cash 50000
Notes Receivable 50000

2. DM (Debit Memo)
Bank Service Charge 500
Cash 500
 Deposit in transit or Undepo
Cash Receipt Book 14-May
Ref Cash Sales Accounts Receivable Sundry Debit Credit 22-May
OO1 15000 31-May
2 20000
3 30000 DIT - collection recorded in t
4 40000 O/C - disbursements recorde
5 12000
6 8000 Items reflected in the Bank S
125000 * CM (+)
* DM (-)

Debit Credit Original Books of accounts

Outstanding Checks
CH#2002 15000
2006 8000
2008 6000
2009 4000
33000

Bank Reconciliation Statement

Balance for Bank Statement 89500
Bank Reconciling items
Deposits in transit 50000
Outstanding Checks -33000

Adjusted Bank Statement Balance 106500

Balance ledger (Bank) 57000

Bank Reconciling items
CM - Note Collected 50000
DM - BSC -500
106500

Adjusted Balance for Books 106500

Deposit in transit or Undeposited Collection
30000
12000
8000
50000
DIT - collection recorded in the book of accounts but not yet reflected in the bank statement
O/C - disbursements recorded in the books of account not yet reflected in the bank statements

Items reflected in the Bank Statement recorded in Books of Account