1. Answer the question is it okay that bank error or book error is not declared in bank reconciliation?

2. Answer the problem below and shows the solution nicely.

The Boulevard Sales Company adopted an ironrest system of handling cash and opened a current account with Philippine Banking Corporation on March 1 of the current year. The company made an initial deposit of P15,000 representing owner's initial investment. On March 31, a bank statement was received as follows: PHILIPPINE BANKING CORPORATION Ayala Avenue NSF - represents a customer's Boulevard Sales Company ACCOUNT NO. 2435 check which is dishonoured by the 210 Avala Building MARCH 31. 2012 bank Check No Debit Credit Date Balance SC - service charge of the bank 15,000 01-Mar 15,000 13,000 28.000 CM - represents collection of a No. 120 600 4 27,400 customer's note with a face value 121 1,000 6 26,400 of P7,500 plus interest of P400 5,000 7 31,400 less collection charges of P100. 123 720 10 30,680 REQUIRED: 122 4,600 8,000 12 34,080 125 1,600 10 32,480 1. Prepare a bank reconciliation 16,200 17 48,680 statement as of May 31, 2012. 127 4,000 21,300 20 44,680 2. Adjusting entries in the books 128 1.200 64.780 of the depositor. 130 2.500 25 62.280 129 2,000 7, 800 CM 27 68,080 700 NSF 67,380 125 SC 29 67.255 19.600.00 30 86.855CASH RECEIPTS BOOK CASH DISBURSEMENTS BOOK 01-Mar 15,000 V Check No. 13,000 V 120 600 5.000 121 1.000 14 8,000 122 4,600 14 2,200 V 123 720 15 14,000 124 2.500 19 15,000 Outstanding V 125 1.600 Checks 6.300 126 950 25 10,000 V 127 4.000 2 9,600 128 1.200 29 4,500 Deposits in 129 2,000 30 7,500 Transit 130 2,500