Accountin

g for Cash
Proof of Cash

Proof of Cash
Two-date bank reconciliation
The following information may be omitted:
A. Book balance beginning and ending
B. Bank balance beginning and ending
C. Deposits in transit beginning and ending
D. Outstanding checks beginning and ending

Proof of Cash
Two-date bank reconciliation
Computation of book balance
Balance per book beginning of month
xx
Add: Book debits during the month
xx
Total
xx
Less: Book credits during the month
xx
Balance per book end of month
xx

Proof of Cash
Two-date bank reconciliation
Book debits
Refer to cash receipts or all items debited to
the cash in bank account.

Book credits
Refer to cash disbursements or all items
credited to the cash in bank account.

Proof of Cash
Two-date bank reconciliation
Computation of bank balance
Balance per bank beginning of month
xx
Add: Bank credits during the month
xx
Total
xx
Less: Bank debits during the month
xx
Balance per bank end of month
xx

Proof of Cash
Two-date bank reconciliation
Bank credits
Refer to all items credited to the account of
the depositor which include deposits
acknowledged by bank and credit memos.

Bank debits
Refer to all items debited to the account of
the depositor which include checks paid by
bank and debit memos

Proof of Cash
Two-date bank reconciliation
Computation of deposits in transit
Deposits in transit beginning of month
xx
Add: Cash receipts deposited during the month
xx
Total deposits to be acknowledged by bank
xx
Less: Deposits acknowledged by bank during
the month xx
Deposits in transit end of month

Proof of Cash
Two-date bank reconciliation
Computation of outstanding checks
Outstanding checks beginning of month
xx
Add: Checks drawn by depositor during the
month
xx
Total checks to be paid by bank
xx
Less: Checks paid by bank during the month
xx
Outstanding checks end of month
xx

Proof of Cash
Proof of cash

Proof of cash
Is an expanded reconciliation in that it
includes proof of receipts and
disbursements.
Discover possible discrepancies in
handling cash particularly when cash
receipts have been recorded but have
not been deposited.

Proof of Cash
Proof of cash
Three forms of proof of cash
Adjusted balance method
Book to bank method
Bank to book method

Proof of Cash
Computational
Refer to the book

End of Discussion