PROBLEM

Balance per company’s ledger:

Nov. 30 520,000
Dec. 31 700,000
Total debits to cash per company’s books
(recorded receipts) during December 2,500,000

Total credits to cash per company’s books

(recorded disbursements) during December 2,320,000

Bank Balance
Nov. 30 547,400
Dec. 31 668,200

December credits recorded by Bank

during December 2,509,400
December debits recorded by Bank
during December 2,388,600

Deposits in Transit
Nov. 30 160,000
Dec. 31 225,000

Oustanding Checks
Nov. 30 143,000
Dec. 31 118,000

Bank Service Charges(recorded by the

depositor in the month following the month
of charge)
November 1,200
December 800

Bank credit memo for customer’s note

collected by bank in November
(face value 60,000plus interest 600),
recorded by the company only
in december. 60,600

Bank credit memo for proceeds of

bank loan granted
by the bank on Dec. 31. 100,000

Customer’s DAIF check returned by the bank

(recorded by the company
in the following month)
Returned in November 25,000
Returned in December 14,000

Bank erroneously recorded disbursements of another company in Self Balancing’s Books corrected by
bank the following month:
Nov 15,000
Dec 30,000

Bank erroneously recorded receipts of another company in Self Balancing’s Books corrected by bank the
following month:
Nov 25,000
Dec 20,000