TRUE OR FALSE 1-25
A comp 12 Time depa 15. A passt JANUARY 31, ZUZU P84,000 P40,000 5,000 1,000 14 Allt 46.000 P130,000 Balance per bank Add: Deposit in Transit NSF customer check Service charge Total Less: Outstanding check Check no. 725 Check no. 726 Note collected by bank Balance per book P37.000 28,000 65.000 15.000 80,000 P50,000 Take note: 1. The bank deposits are equivalent to book debits while bank withdrawals are equivalent to book credits. 2. The bank reconciliation will be prepared once the Bank Statement is received Take note that the book balance and bank balance must be equal activity 9. EXERCISES ENGAGE 9.1 TRUE OR FALSE True or False Write True if the statement is wrong, and False if the statement is correct. Write the answer before the number 1. A bank Savings Account earns interest income. 2. Bank issues a passbook for a Current Account 3. There is no maintaining minimum balance for a Checking Account 4 An ATM Card can be used as payment for purchases. s. Deposit slip is used to withdraw money from a bank account 6. Withdrawal slip is used to deposit money to the depositor's account. 7. Anyone could deposit to anyone's bank account. 114 LA company can use check as form of payment Time deposit earns interest higher than savings and current accounts A passbook can be used to withdraw money from an ATM 1. Al transactions must be done in the bank premises Bank Statement could be downloaded in an online banking system In a Bank Reconciliation, adjusted bank balance must not be equally with adjusted book balance 1 Interest Income from bank is a bank debit Interest Income from bank is a bank credit - Bank service charge is bank credit Bank service charge is bank debit. nBook errors must be adjusted by the bank. - Bank errors must be adjusted by the bank. NSF check means check with sufficient funds Deposits in transit are cash recorded by the bank but not yet recorded in the books. Deposits in transit are cash recorded in the book but not yet recorded by the bank. x Outstanding checks are checks already recorded by the bank but not yet recorded in the books. 11 Outstanding checks are checks already recorded in the books but not yet recorded by the bank. Erasure is allowed in a check provided it is countersigned by the depositor. Bank debits include NSF Check Bank Service Charge is an income of the depositor. EXPLORE 9.2 MULTIPLE CHOICE Which of the following would be added to the balance per bank statement to arrive at the correct cash balanco? a Deposits in transit Outstanding chock Bank service charge A customer note collected by the bank on behalf of the depositor Bank reconciliations are normally prepared on a monthly basis to identify adjustments needed in the depositor's records and to identity bank errors Adjustments on the part of the depositor should be accounted for . Outstanding checks and deposits in transit. 115
