May 31 Balance per Bank - Deposit outstanding- Erroneous bank charge- Outstandin

ID: 2337825 • Letter: M

Question

May 31 Balance per Bank - Deposit outstanding- Erroneous bank charge- Outstanding Check Erroneous Bank Credit - CM offer collection of note - (60ok) 2.6 M 300k 40k (100k) (60k) Balance per book $2190k Junes Sales Bank Book -checks recorded -collection of erroneous bank credit in May -Deposit recorded -correction of erroneous bank charge -service charge recorded 2.5m 2.2m 60k 1.6M 40k 1.8m 50k 55øk CM for collection by bank -Nsf checks returned with june 30 statement will be redeposited 00k 1. How much is Outstanding Check on June 30? 2. How much is Deposit in transit on June 30? 3. How much is adjusted cash receipts in Juner 4. How much is adjusted cash disbursment in June? 5. How much is adjusted cash balance as of June 30?

Explanation / Answer

(1) Outstanding Checks on 30 June :-

Checks recorded in Book in June

2500000

(+) Outstanding Check in May

100000

(-) Checks recorded in Bank in June

2200000

400000

(2) Deposit in Transit on 30 June :-

Recorded in Books in June

1800000

(+) Outstanding in May

300000

(-) Recorded in Bank in June

1600000

500000

(3) Adjusted cash Receipt :-

Deposit recorded in bank – Outstanding Deposi in 31 May + Outstanding deposit in 30 june

1600000 – 300000 + 500000 = 1800000

(4) Adjusted cash Disbursement :-

Checks recorded in Bank – outstanding check on 31 May + outstanding check on 30 june

= 2200000 – 100000 + 400000 = 2500000

(5) Adjusted cash Balance

1800000 – 2500000 = (700000)