https://file.aiquickdraw.com/mathbot/file/1725683356836bsahx7in.jpg

Let's break down the problem from the image and solve it.

### Problem Details:
Ral Company’s checkbook balance on December 31, 2023, was **₱95,000**. In addition, the following items were provided:

1. **Check payable to Ral, dated January 2, 2024, in payment of a sale made in December 2023, not included in December checkbook balance:** **₱90,000**
2. **Customer’s check, deposited December 15, 2023, and included in the December 31 checkbook balance but returned by the bank on December 30, 2023, marked "NSF":** **₱10,000**
3. **Check drawn by Ral Company, payable to a supplier, dated and recorded January 2, 2024, but included in the December 31 checkbook balance:** **₱56,000**
4. **Check drawn by a customer, payable to Ral, dated December 30, 2023, and recorded in the checkbook in December but not received until January 10, 2024:** **₱38,000**

### Objective:
We need to calculate the amount to be reported as "cash" on December 31, 2023, based on these details.

### Solution Steps:
1. Start with the checkbook balance: **₱95,000**
2. Adjust for the **₱90,000 check** payable to Ral but dated January 2, 2024. This is a future event and should not be included in the 2023 cash balance. So, **no adjustment** for this.
3. Deduct the **₱10,000 NSF check** because it was returned, meaning it should not be part of the cash balance.
4. Add back the **₱56,000 check** drawn by Ral for the supplier, since it’s dated January 2, 2024, and does not affect the 2023 cash balance.
5. Exclude the **₱38,000 check** received after December 31, 2023, as it should not be considered in the 2023 cash balance.

### Calculation:
\[
\text{Adjusted Cash Balance} = ₱95,000 - ₱10,000 + ₱56,000 = ₱141,000
\]

So, the amount to be reported as "cash" on December 31, 2023, is **₱141,000**.

Let me know if you want further details or have any questions!

### Here are 5 related questions:
1. What is the effect of NSF checks on cash balances?
2. How do post-dated checks affect the financial statements?
3. How is the reconciliation of bank and book balances done?
4. What are common reasons for discrepancies between checkbook and bank balances?
5. How should outstanding deposits be treated when calculating cash balances?

**Tip:** Always ensure that checks dated after the reporting period and NSF (non-sufficient funds) checks are properly accounted for during cash reconciliation to avoid overstatement.

What is the amount to be reported as 'cash' on December 31, 2023?

Learn how to calculate the cash balance to be reported on December 31, 2023, with a detailed explanation of adjustments for NSF checks and post-dated checks. This problem is essential for understanding bank reconciliation in accounting.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation