The Cash in Bank account of Minus, INC.

in the general ledger showed a December 31, 2022, balance of

P1,357,887. Information that might be useful in preparing a bank reconciliation is as follows:

a) The December 31, 2022, cash receipts of P57,000 were not deposited in the bank until January 2, 2023.

b) One check written in payment of rent for P24,600 was correctly recorded by the bank but was recorded
by MINUS as P26,400 disbursement.

c) In accordance with prior authorization, the bank withdrew P40,000 directly from the checking account as
payment on a mortgage note payable. The interest portion of that payment was P35,000. MINUS has
made no entry to record the automatic payment.

d) Bank service charges of P5,000 were listed on the bank statement.

e) A deposit of P87,500 was recorded by the bank on December 13, but it did not belong to MINUS. The
deposit should have been made to the checking account of Misun, Inc.

f) The bank statement included a charge of P13,500 for an NSF check. The check was returned with the
bank statement and the company will seek payment from the customer.

g) MINUS maintains a P30,000 petty cash fund that was appropriately reimbursed at the end of December.

h) According to instruction for MINUS on December 30, the bank withdrew P2,000,000 from the account
and purchased Treasury Bills for MINUS. MINUS recorded the transaction in its books on December 31
when it received notice from the bank. Half of the treasury bills mature in two months and the other half
in six months.

i) Outstanding checks were P132,525.

1. What is the balance per bank statement on December 31, 2022?

A. P1,354,287 B. P1,357,887 C. P1,463,212 D. P1,264,287

2. What is the corrected cash in bank balance on December 31, 2022?

A. P1,304,787 B. P1,301,187 C. P1,284,187 D. P1,211,187

3. What amount of cash and cash equivalents should be reported in the current asset section of the balance
sheet on December 31, 2022?
A. P2,831,187 B. P2,321,187 C. P1,301,187 D. P1,874,287

Problem 2.
 The cash account of ANUNA COMPANY shows the following activities:
Date Debit Credit Balance

Nov. 30 Balance P115,000

Dec 2 November bank charges 50 114,950
4 November bank credit for
notes receivable collected P10,000 124,950
15 NSF check 1,300
123,650
20 Loan proceeds 48,500 172,150
21 December bank charges 60 172,090
31 Cash receipts book 707,300 879,390
31 Cash disbursements book 408,000 471,390

CASH BOOKS

RECEIPTS PAYMENTS

Date OR No. Amount Check No. Amount

Dec 1 110-120 P11,000 801 P2,000

2 121-136 21,300 802
3,000
3 137-150 20,000 803 1,000
4 151-165 56,000 804 3,000
5 166-190 39,000 805 12,000
8 191-210 66,000 806 19,000
9 211-232 88,000 807 26,000
10 233-250 77,000 808 30,000
11 251-275 21,000 809 61,000
12 276-300 30,000 810 7,000
15 301-309 55,000 811 8,000
16 310-350 8,000 812 16,000
17 351-390 19,000 813 20,000
18 391-420 9,000 814
22,000
19 421-480 17,000 816
36,000
22 481-500 21,000 817
11,000
23 501-525 32,000 818
50,000
23 - - 819 7,000
23 - - 820 4,000
26 526-555 74,000 821
3,000
28 556-611 5,000 822
12,000
28 - - 823
13,000
29 612-630 38,000 824
29,000
29 - - 825
2,000
29 - - 826
11,000
P707,300 P408,000

BANK STATEMENT
Date Check No. Charges Credits
Dec 1 792 P2,500 P8,500
2 802 3,000 11,000
3 - - 21,300
4 804 3,000 20,000
5 EC 81,000 81,000
8 805 12,000 95,000
9 CM 16 - 12,000
10 799 7,050 154,000
11 DM 57 1,300 77,000
12 808 30,000 21,000
15 803 1,000 -
16 809 61,000 85,000
17 DM 61 60 8,000
18 813 20,000 19,000
19 CM 20 - 48,500
22 815 6,000 -
23 816 36,000 47,000
23 811 8,000 -
23 801 2,000 -
26 814 22,000 32,000
28 818 50,000 74,000
28 DM 112 120 -
29 821 3,000 5,000
29 CM 36 - 12,000
29 820 4,000 -
Totals P353,030 P831,300

Additional Information:

a. DMs 61 and 112 are for service charges.

b. EC is error corrected.
c. DM 57 is for an NSF check.
d. CM 20 is for loan proceeds, net of P150 interest charges for 90 days.
e. CM 16 is for the correction of an erroneous November bank charge.
f. CM 36 is for customers' notes collected by bank in December.
g. g. Bank balance on December 31 is P592,270.

1. The total outstanding checks at November 30 should be

A. P9,550 B. P7,050 C. P13,050 D. P15,550
2. The total outstanding checks at December 31 should be
A. P147,000 C. P153,000 B. P162,550 D. P159,000

3. The deposit in transit at November 30 should be

A. P8,500 C. P48,500 D. PO B. P19,500

4. The deposit in transit at December 31 should be

A. P44,000 C. P46,500 B. PO D. P38,000

5. The adjusted book balance at November 30 should be

A. P125,000 B. P124,950 C. P115,000 D. P136,950

6. The adjusted bank receipts for the month of December should be

A. P763,800 B. P773,800 C. P765,800 D. P767,800

7. The adjusted book disbursements for the month of December should be

A. P403,480. C. P415,480 B. P415,540. D. P409,480

8. The adjusted bank balance at December 31 should be

A. P592,270 C. P558,270 B. P477,270 D. P483,270