Problem - The following bank reconciliation is presented for Lily Company for the month of July, 2016:
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Balance per bank statement, 7/31
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PI80,000
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Add deposits in transit
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40,000
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Total
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P220,000
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Less: Outstanding checks
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P 60,000
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|
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Bank credit recorded in error
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10,000
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70,000
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Balance per books, 7/31
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P1501000
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Data per bank statement for the month of August, 2016 follow:
August deposits, including note for P50,000 collected in behalf of Lily Company - P275,000
August disbursements (including NSF for P35,000 and service charges of P1,500) - 220,000
All items that were outstanding as of July 31 cleared through the bank in August, including the bank credit. In addition, P25,000 in checks were outstanding and deposits of P35,000 were in transit as of August 31, 2016.
REQUIRED: Compute the following:
(a) Cash receipts per books during August
(b) Cash disbursements per books during August
(c) Unadjusted cash balance per ledger at August 31, 2016
(d) Correct cash balance at August 31, 2016.