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Problem 1: If the month-end bank statement shows a balance of P 36,000, outstanding checks are P 12,000, a deposit of P 4,000 was in transit at month end, and a check for P 500 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
a. P27,500
b. P28,500
c. P20,500
d. P43,500
Explain the use of reciprocal ledger accounts in home office and branch accounting systems. Discuss in detail and provide the suitable example.
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