D. The accountant of Borneo Enterprises received the bank statement of the company for the month of December 200B, which showed a credit balance of P 102,365.10. The cash in bank balance as per the general ledger however showed a debit balance of P 96,991.10. The following reconciling items were discovered: 1. A deposit in the amount of P 6,250 made in the afternoon of December 31 was not reflected in the bank statement. 2. The company's total checks issued for the month of December amounted to P 54,326.00 but the cancelled checks returned by the bank amounted to only P 35,022.00. There were no outstanding checks last month. 3. A check payable to Borbon Enterprises for P 900 was erroneously credited by the bank to the account of Borneo Enterprises. 4. A customer paid his account directly to the bank in the amount of P 5,000.00. 5. Checks deposited but returned by the bank marked “DAIF" (Drawn against insufficient fund), P 14,930.00 6. Bank service charge, P 30.00. 7. A check issued for P 3,265.00 in payment of insurance expense was erroneously recorded in the books by the bookkeeper as P 3,625.00. 8. Interest earned, P 1,020.

D. The accountant of Borneo Enterprises received the bank statement of the company for the month of December 200B, which showed a credit balance of P 102,365.10. The cash in bank balance as per the general ledger however showed a debit balance of P 96,991.10. The following reconciling items were discovered: 1. A deposit in the amount of P 6,250 made in the afternoon of December 31 was not reflected in the bank statement. 2. The company's total checks issued for the month of December amounted to P 54,326.00 but the cancelled checks returned by the bank amounted to only P 35,022.00. There were no outstanding checks last month. 3. A check payable to Borbon Enterprises for P 900 was erroneously credited by the bank to the account of Borneo Enterprises. 4. A customer paid his account directly to the bank in the amount of P 5,000.00. 5. Checks deposited but returned by the bank marked “DAIF" (Drawn against insufficient fund), P 14,930.00 6. Bank service charge, P 30.00. 7. A check issued for P 3,265.00 in payment of insurance expense was erroneously recorded in the books by the bookkeeper as P 3,625.00. 8. Interest earned, P 1,020.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section: Chapter Questions

Problem 2AP

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