Problem The senior auditor Instructed you to prepare a four column proof of cash receipts and disbursements for the month of August 2008 The bank reconciliation prepared by Albarando Company at July 31 Is reproduced below (All book disbursements were recorded In August ] Bank Balance 52,000 Book Balance 40,000 Add : Proceeds of note receivable Add : Deposit In transit , July 31 800 by bank In July 3,000 Deposit made In bank July 31 not recorded on books until August 1 000 Total 52,900 Total 49,000 Less : Outstanding Checks Less : Service Charge 100 No . 435 200 No - 450 1, 800 No . 451 1,400 No . 454 800 4,000 Adjusted belance 48,900 Adjusted balance 48,900 Upon Inquiry about the client's August 31 bank reconciliation, you were Informed hat it has been lost and that no client is too busy at this time to prepare another. Your senior auditor told you to get the August bank statement and pald checks and to prepare the August 31 reconciliation so that you may complete the August proof of cash .. The August bank statement Is reproduced below : Davao Bank Account name : Albarando Company Date Debits Credits July 31 August 1 1,300 900 August 1,400 AUGUST 500 10,000 AUGUST 12 140 EC EC 15 1.00 20 700 14,000 AUGUST 1.440 August 100 EC 100 EC August TE 440 EV August 31 300 OM August 31 1,820 SV - Service Charges : DM - Debit Memos ; BC . Bror Connected ; CM - Credit Memo The pald checks accompanying this bank statement (all clearing In August) were: (checks listed In order of payment by bank ) No . 450 1,800 No . 455 1,000 No . 458 1,440 451 1.400 456 700 459 1 820 454 600 The checks register revealed that the last check Issued on August was no. 480 for F1,000 and that check no . 457 was for P2,400 Cash received for the perlod August 21 through 31 of PS,400 was deposited In the bank on September 1