Roy Merchandising Company just concluded its first year of operations and received its bank statement from Bank of Oita with an ending balance of ¥555,000. Looking into its cash records, the ending cash balance is ¥556,050. A small discrepancy but there is a need to find the correct balance for financial statement reporting purposes. Upon further inquiry, the company accountant determined that there were cash collections and receipts bound for deposit totaling ¥95,000. Looking into checks issued there were checks that did not make it to the bank for clearing as of the cut-off date of the bank statement, ¥75,000. 

A customer’s note receivable was collected by the bank on the last banking day and the customer failed to notify the company amounting to ¥20,000; the corresponding interest is ¥2,000. The customer assumed the company would be notified anyway by the ‘furikomi’ (bank payment/transfer). There was one customer check determined to have no sufficient fund and therefore it bounced, ¥3,000. 

Furthermore, there was a ¥50 bank service charge reflected in the bank statement.

Adjusted cash balance per books

Adjusted cash balance per bank