Question

Shown below is the bank reconciliation for Marvelous Company for May 2019: Balance per bank, May 31, 2019 P75,000 Add: Deposits in transit 12,000 Total 87,000 Less: Outstanding checks P14,000 Bank credit recorded in error 5,000 19,000 Cash balance per books, 5/31/19 P68,000 The bank statement for June 2019 contains the following data: Total deposits P55,000 Total charges, including an NSF check of P4,000 and a service charge of P200 48,000 All outstanding checks on May 31, 2019, including the bank credit, were cleared in the bank in June 2019. There were outstanding checks of P15,000 and deposits in transit of P19,000 on June 30, 2019. What is the cash balance per books on June 30, 2019?

Answer 1

First we will calculate Bank balance as on june 30 2019

Balance as per bank on May 31 2019- P75,000

Add Total deposits P55,000

(Including deposit in transit )

Less Total Charges -P48,000

( including an NSF check of 4000 and service charges of 200)

Less Total outstanding checks -P10,000

14000 out of which 4000 is included in total charges remaing will be recorded here

Less Bank credit cleared -P5,000

Balance as per Bank on June 31 2019 P67000

Bank reconcilation statement

Balance as per bank on june 31 2019 P67000

Add deposit in transit. . P19000

Less outstanding checks - P15000

Balance of Cash on June 31,2019. P71000