Question

Requirements:

1. Prepare the bank reconciliation statements

2. Adjusting entries

F. CITIBANK Jetro also maintains a bank account with Citibank. Your review of the bank reconciliation statement disclosed the following information: 1. On December 22, 2018, the bank erroneously credited the account of Jetro Corporation for P 195,000 representing deposit for the account of another company, 2. Postdated checks totaling P 37,900 were included in the deposits in transit. These represent collections of accounts receivable from customers. The checks were actually deposited on January 5, 2020. 3. On December 28, 2019, the company issued checks to creditors totaling P 115,000. These checks were released on January 5, 2020. 4. A check dated December 12, 2019, in payment of accounts payable was recorded as P 12,000. Upon examination of the checks returned by the bank, the actual amount was P 21,000. 5. A check for P 4,750 in payment of a minor repair of office, equipment was not recorded on the company books. 6. Transfer of fund of P 59,300 to Bank of America current account 7. Interest camed amounting to P 5,720 was not recorded. 8. Deposit in transit and outstanding checks at December 31, 2018, amounted to P 89,200 and P 132,000, respectively. 9. The cash in bank balance per book on December 31, 2019, is 281,200.

NOTE:

P is Philippine Peso (Philippine Currency)

Answer 1

Bank Reconciliation Statement (31.12.2019 ) Particulars Amount 2.81.200 Balance as per books Add: Eroneously credited by bank Cheques issued but not withdrawn Cheque returned Interest earned Outstanding cheques 1,95,000 1.15,000 12,000 5,720 1,32,000 Less : Deposit in transit Cheque not recorded Transfered to BOA Deposit in transit 31,900 4,750 59,300 89.200 Balance as per Bank 5,49,770