Question

The accountant of Pink Lady Company was tasked to perform monthly bank reconciliation. She downloaded the company's October 31 bank statement that showed a balance of P64,800. She also printed the cash ledger from the company's computerized accounting system. It states an ending balance of P16,700. She also found the following items:

a. The bank statement showed bank service charge of P1,600.

b. The bank collected P3,000 from a note receivable for PX Manufacturing. P500 was charged as a collection fee.

c. Deposits in transit, P102,000.

d. Checks outstanding on November 30, P 158,200.

e. The accountant found a check issued to Oragon Corporation for P9,000 that cleared the bank but was not in the ledger.

Answer 1

Bank reconciliation statement

As on 31st October

Balance as per bank statement as on 31st Oct 64,800

Add : Deposit in transit 102,000

Less : Outstanding checks (158,200)

Adjusted balance as per bank statement as on 31st Oct 8,600

Balance as per cash ledger as on 31st Oct 16,700

Add : Bank Collection 3,000

Less : Bank charge for collection (500)

Less : Service charges (1,600)

Less : Check issued and cleared (9,000)

Adjusted balance as per cash ledger as on 31st Oct 8,600