INTERMEDIATE ACCOUNTING 1 - BANK RECONCILIATION
BANK RECONCILIATION
Bank Deposits CREDIT MEMOS: (debited cash)
1. Demand Deposit - is the 1. Proceeds of loan
current account/checking Cash xxx
account/commercial where Loans Payable xxx
deposits are covered by 2. Matured Time Deposit
deposit slips and where funds Cash xxx
are withdrawable on demand Time Deposit xxx
by drawing checks against the 3. Collection of Notes
bank. Cash xxx
2. Savings Deposit - the Notes Receivable xxx
depositor is given a passbook *If discounted, pwede
upon the initial deposit. The magkaroon ng discounted
passbook is required when account.
making deposits and DEBIT MEMOS: (credited cash)
withdrawals. 1. Service Charge
3. Time Deposit - is similar to Service Charge xxx
saving deposit in the sense Cash in bank xxx
that it is interest bearing. It 2. Payment of loans
may be pre terminated or Loans Payable xxx
withdrawn on demand. Interest Income xxx
Bank Reconciliation Cash xxx
❖ is a statement which bring 3. NSF or DAIF or DAUD
into agreement the cash - Tumalbog yung check ng
balance per book and cash customer. Nagrecord ka sa
balance per bank. receipts & deposit pero walang
Book Reconciling Items laman (no sufficient funds)
1. Credit Memo Accounts Receivable xxx
2. Debit Memo Cash xxx
3. Errors 4. Technically defective checks
Bank Reconciling Items Accounts Receivable xxx
1. Outstanding Checks Cash xxx
2. Deposit in Transit
3. Errors
INTERMEDIATE ACCOUNTING 1 - BANK RECONCILIATION
BANK RECONCILING ITEMS:
a. Deposit in Transit (added) - Forms of Bank Reconciliation
are collections already 1. Adjusted Balance Method
recorded by the depositor as Unadjusted Book Balance xxx
cash receipts but not yet Add: Credit Memos xxx
reflected on the bank Total xxx
statement. Less: Debit Memos (xxx)
*may dinedeposit ka pero di Adjusted Book Balance xxx
nakarating sa bank.
b. Outstanding checks Unadjusted Bank Balance xxx
(deducted)- are checks Add: Deposit in Transit xxx
already recorded by the Total xxx
depositor as cash Less: Outstanding Checks (xxx)
disbursements but not yet Adjusted Bank Balance xxx
reflected on the bank
statement. 2. Book to Bank Method
*checks na nagawan mo na ng Unadjusted Book Balance xxx
entry or nabigay mo na sa tao Add: Credit Memos xxx
or nabawasan mona cash mo Outstanding checks xxx
pero di pa naiincash sa bank. Total xxx
c. Errors - there are many Less: Debit Memos (xxx)
errors and it depends on the Deposit in Transit (xxx)
situation on how you’ll correct Unadjusted Bank Balance xxx
it.
3. Bank to Book Method
Unadjusted Bank Balance xxx
Add: Deposit in Transit xxx
Debit Memos xxx
Total xxx
Less: Outstanding checks (xxx)
Credit Memos (xxx)
Unadjusted Book Balance xxx
INTERMEDIATE ACCOUNTING 1 - BANK RECONCILIATION
