PROBLEM NO . 6 Your audit senior instructed you to prepare a four column proof of cash receipts and disbursements for the month of December, 2005. The bank reconciliation prepared by Ringgit Company at November 30 is reproduced below : Unadjusted bank balance P96,800 Unadjusted book balance P58,640 Add : deposit in transi 18,000 Add : CM - Note collected 40,320 Total 114,800 Total 98,960 Less outstanding checks Less : DM bank charges 160 No . 276 P2,400 282 7,200 284 4,800 285 1,600 16,000 Adjusted bank balance P98,800 Adjusted balance P98,800 The December bank statement, which has a beginning balance of P96,800, is reproduced below : May Bank Account Name : Ringgit Company Date Debits Credits December 01 P18,000 December 02 P7,200 40,000 December 04 24,000 December 06 48,000 December 08 400,000 CM83 December 10 40,000 DM97 December 11 56,000 December 16 20,000 December 18 64,000 December 21 72,400 December 28 36,000 80,000 December 31 4,000 DM98 64.000 CM84 Totals P131,200 P842,400 DM97 - Customer's DAIF check CM83 - Note collected by the bank DM98 - Service Charges CM84 - Account collected by the bank The company's cash receipts and cash disbursements journals for the month of December 2005 are provided below : Cash Receipts Journal Cash Disbursements Journal Date OR NO Amount Date Check No Amount Dec . 01 415 P40,000 Dec . 01 286 P16,000 05 416 48,000 03 287 24,000 10 417 56,000 10 288 32,000 17 418 64,000 14 289 20,000 20 419 72,000 20 290 28,000 30 420 80,000 23 291 36,000