Audit: Cash-and-Cash

Equivalent

Problem 1

1. Cash on hand
Unadjusted can on hand 372,000
Returned customer's check -60,000
Customer's Check dataed Jan 2, 2021 -30,000
282,000

2. Petty Cash fund

Petty cash fund total 10,300
Employees's sale -1,600
Currency in an envelope markerd "collection for charity" -1,200
Unreplenished petty cash vpuchers -800
6,700

3. BPI Current account

Unadjusted BPI current account 950,000
Unreleased check 50,000
Postdated check deliver 86,000
1,086,000

4. Cash-and cash equivalents

Cash on hand 282,000
Petty Cash fund 6,700
BPI current account 1,086,000
Security Bank current account 1,240,000
PNB Time deposit 300,000
2,914,700

Adjusting Entries

A. Accounts Recievable 90,000

Cash on hand 90,000

B. Advances to employees 1,600

Expenses 800
Cash short/over 900
Petty cash fund 3,300

C. BPI current account 50,000

Accounts payable 50,000
D. Accounts Receivable 86,000
Cash on hand 86,000
 Domonition Quantity Amount Total
100 10 1,000
50 80 4,000
20 70 1,400
10 54 540
1 410 410
0.50 324 162
0.25 64 16 ₱7,528

Checks
Date Drawer Amount
Dec-30 Ms. Jessie 2,400
Dec-30 Robert 28,000
Dec-31 Jay. Ar 3,360
Dec-31 Frances 35,600
Dec-31 Ryan 16,600 85,960

Unreimburesed vouchers
Date Account Anount
Dec-23 Advances 14,000
Dec-27 Postage 3,240
Dec-29 Transportation 300
Dec-29 Repairs 1,600 19,140
Total cash accounted ₱112,628
Less: Accountabilities
Petty Cash 20,000
Collection (per official receipt) 86,600
Unclaimed salary 15,000
Excess travel advance 3,360
Unreceipyed collection from Robert 28,000 152,960
Cash shortage 40,332
 Adjusting Entries
A. Cash 28,000
Accounts receivable 28,000

B. Advances to officers and employees 14,000

Postage expense 3,240
Transportation Expense 300
Repair expense 1,600
Petty Cash Fund 19,140

C. Unused Postage 730

Postage Expense 730

D. Cash 54,000
Accounts Payable 54,000

E. Cash 15,000
Salaries payable 15,000

F. Receivable from custodian 40,332

Cash 40,332

G. Travel expenses 10,160

Petty cash fund 3,360
Advances to officers and employees 13,520
1. Adjusted Deposit in transit
Deposit in transit, beginning 175,250
Postdated checks -50,000
Ajusted deposit in transit 125,250

2. Undjusted outstanding checks 246,750

Unreleased check -14,750
Postdates check delivered -37,210
Adjusted outstanding checks 194,790

Book Balance Bank Balance

Book Balance 293,500 Bank Balance 350,000

Unreleased check 14,750 Add: DIT 125,250
Postdates check 37,210 Total 475,250
Credit memo 15,000 Less: OC -194,790
Total 360,460 Erroneous banck Credit -30,000
Less: Postdated check received -50,000 Adjusted bank Balance 250,460
Cash Shortage -60,000
Adjusted book balance 250,460
Unadjusted balance per bank Dec 31 91,500
Outstanding checks -4,500
Deposit in transit 5,000
Adjusted balance per bank 92,000
Cash balance per books. Dec 31 122,000
Cash over short 30,000

Cash receipts:
Owner's investment 150,000
Proceeds from loan 98,000
Collection from customers 414,000
Total 662,000
Cash disbursements:
Purchase (250,000 - 15,000) 235,000
Store fixture (50,000 -5,000) 45,000
Loan Payment 80,000
Expenses paid 180,000 540,000
Cash balance per books, Dec 31 122,000
 Bank to Book Method
Nov-30 Receipts Disbursement Dec-31
Bank Balance 230,000 420,000 500,000 150,000
Deposit in transit
November 200,000 -200,000
December 120,000 120,000
Outstanding Checks
November -80,000 -80,000
December 60,000 -60,000
Error-bank debits
November 10,000 -10,000
December -20,000 20,000
Error-bank credits
November -40,000 -40,000
December -30,000 -30,000
Bank Charges
November 2,000 2,000
December -3,000 3,000
Customer's noted collected by bank
November -100,000 100,000
December -120,000 -120,000
NSF Checks returned
November -5,000 5,000
December -7,000 7,000
NSF Checks redeposited -10,000 -10,000
Book Balance 217,000 270,000 407,000 90,000
 Book to Bank Method
Nov-30 Recieps Disbursement
Book Balance 227,000 270,000 407,000
Bank Charges
November -2,000 -2,000
December 3,000
Collections by bank not recorded to book
November 100,000 -100,000
December 120,000
NSF Checks returned
November -5,000 -5,000
December 7,000
Error
Deposit in Transit `
November -200,000 200,000
December -120,000
Oustanding checks
November 80,000 80,000
December -60,000
Error-Bank Debits
November -10,000 10,000
December 20,000
Error-Bank Credits
November 40,000 40,000
December 30,000
NSF Checks Redeposited 10,000 10,000
Bank Balance 230,000 420,000 500,000
 Adjusted Balance Method
Nov-30 Receipts
Dec-31 Unadjustes Book Balance 227,000 270,000
90,000 Bank Charges
November -2,000
December
-3,000 Collection by bank not recorded to book
November 100,000 -100,000
December 120,000
120,000 Check of another company erroneously charge by the bank
NSF Checks Returned
November -5,000
-7,000 December
Error
Adjusted book Balance 320,000 290,000

-120,000 Nov-30 Receipts

Adjusted Bank Balance 230,000 420,000
Deposit in Transit
60,000 November 200,000 -200,000
December 120,000
Outstanding checks
-20,000 November -80,000
December
Bank Debits error
30,000 November 10,000 -10,000
December
150,000 Bank Credits error
November -40,000
December -30,000
SF Checks returned, deposited -10,000
Adjusted Bank Balance 320,000 290,000
ethod Adjusting Entries
Disbursement Dec-31 Cash in Bank 120,000
407,000 90,000 Notes Receivable 120,000

-2,000 Bank Services Charge 3,000

3,000 -3,000 Cash in Bank 3,000

Accounts Receivable 7,000

120,000 Cash in Bank 7,000

-5,000
7,000 -7,000

410,000 200,000

Disbursement Dec-31
500,000 150,000

120,000

-80,000
60,000 -60,000

-20,000 20,000

-40,000
-30,000
-10,000
410,000 200,000
 Bank to Book Method
Nov-30 Receipts Disbursem
Bank Balnce 14,010 281,070 275,450
Deposit in Transit
November 2,740 -2,740
December 3,110
Oustanding Checks
November -4,260 -4,260
December 3,870
Certified Check request of the payee -700
Check of another company erroneously charged by the bank -2,010
Cash receipts used as payment 750 750
Bank Charges
November 950 950
December -640
Collections by bank not recoreded to book
November -1,200 1,200
December -1,600
NSF Checks returned
November and recorded in December 1,050 -1,050 -900
December and not recorded -900 -800
Bank error- overstament of recording customer's check
Book error- overstament of disbursement -300 2,925
Book Balance 13,290 279,540 274,635
Dec-31
19,630

3,110

-3,870
700
2,010

640

-1,600

800
-300
-2,925
18,195