Question

Lazer Company had the following bank reconciliation on June 30:

Balance per bank statement, June 30                                                                                     3,000,000

Deposit in transit                                                                                                                                  400,000

Total                                                                                                                                                      3,400,000

Outstanding checks                                                                                                                        (900,000)

Balance per book, June 30                                                                                                           2,500,000

The bank statement for the month of July showed the following:

Deposits, including P200, 000 note collected for Lazer                                                     9,000,000

Disbursements, including P140, 000 NSF customer check

                and P10,000 service charge                                                                                          7,000,000

All reconciling items on June 30 cleared through the bank in July. The outstanding checks totaled P600, 000 and the deposit in transit amounted to P1,000,000 on July 31.

1. What is the adjusted cash in bank on July 31?

2. What is the cash balance per book on July 31?

3. What is the amount of cash receipts per book in July?

4. What is the amount of cash disbursements per book in July?

Answer 1

Ans:-

Part 1)

Adjusted cash in bank on July 31

= 3,000,000 + 9,000,000 - 7,000,000 + 1,000,000-600,000 = 5,400,000

Ans:- Adjusted cash in bank on July 31 is 5,400,000

Part 2)

Cash balance per book on July 31

= 5,400,000 - 200,000 + 140,000 + 10,000 = 5,350,000

Ans:- Cash balance per book on July 31 is 5,350,000

Part 3)

Amount of cash receipts per book in July

= 9,000,000 - 200,000 - 400,000 + 1,000,000 =​​​​ 9,400,000

Ans:- Amount of cash receipts per book in July is 9,400,000

Part 4)

Amount of cash disbursements per book in July

= 7,000,000 - 140,000 - 10,000 - 900,000 + 600,000. = 6,550,000

Ans:- Amount of cash disbursements per book in July is 6,550,000