Professional Documents
Culture Documents
1. The “CASH” account of Angel Corporation’s ledger on December 31, 2017 showed the following:
a. Petty cash fund (including P7,500 unreplenished
voucher of which P2,400 is dated January 3, 2018) P15,000
f. Time deposit acquired December 31, 2017 due on March 31, 2018 50,000
#211-009-091 50,000
What Angel Corporation’s adjusted cash and cash equivalents balance at December 31, 2017 is:
2. The cash account of the Cristine Corporation as of December 31, 2017 consists of the following:
At what amount will the account “Cash” appear on the December 31, 2017 balance sheet?
a) 1,315,000
b) 1,495,000
c) 1,425,000
d) 1,725,000
3. An examination on the morning of January 2, 2018 by the auditor for the Kaila Company discloses the following items in
the petty cash drawer:
2. How much petty cash fund shall be shown as part of "Cash" balance as of December 31, 2017?
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a. P 10,761.60 c. P 4,606.60
b. P 1,156.60 d. P 5,141.60
4. You are making an audit of the San Rafael Company for the year ended December 31, 2017. The balance of the petty
cash account on December 31, 2017 was P15,000. Your count of the imprest cash fund, made at 9:00 a.m. on January
3, 2018, in the presence of Ms G. Gonzaga revealed:
Checks:
Date Maker Bank Amount
12-28-17 Urquiola, employee PNB 3,000-
12-29-17 Sta. Maria, employee Security Bank 1,500-
12-31-17 L. Chua, customer Asia Trust 2,500-
Vouchers:
Date Voucher No. Particulars Amount
12-13-17 151 Freight out P 500-
12-28-17 183 Supplies 300-
12-29-17 184 Freight In 394.20
12-31-17 189 Freight on cabinet 741.10
01-02-18 001 Freight in 244.70
IOUs:
12-21-17 S. Dechavez, employee 300-
(As a general rule, the petty cashier endeavoured to turn over the proceeds of cash sales to the general cashier every
Friday. Proceeds on these sales were recorded and deposited by the general cashier.)
2. Adjusting entries for the petty cash fund includes a credit to:
5. You are making an audit of the Khai Corporation for the past calendar year. The balance of the Petty Cash account at
December 31, 2018 was P1,300. Your count of the imprest cash count made at 8:30 am on January 3, 2019, in the
presence of the petty cash custodian, revealed:
Checks:
Date Maker Bank
12/28/2018 Macky, vice-president PNB 360.00
12/29/2018 Andy, employee DBP 60.00
12/31/2018 Bobot, customer RCBC 153.80
01/02/2019 Neil, customer PNB 121.36
01/10/2019 Jeff, employee PNB 60.00
(check received Dec. 29)
(These checks were all considered good when deposited after dates shown on the checks. The first four
checks were actually deposited Jan. 3; the last check was deposited Jan. 11; all five checks proved to be
good.)
Vouchers:
Dec. 11 #261 Richard, shipping clerk – temporary advance for the use of the receiving department.
Your count of Mr. Richard’s fund revealed: currency – P28.80; merchandise freight bills,
P31.20. P 60.00
Dec. 28 # 301 Postage 12.00
Dec. 29 # 302 Freight bill on merchandise purchases 47.30
Dec. 31 # 305 Freight bill on office supplies 88.93
Jan. 2 # 500 Freight bill on merchandise purchases 29.36
Sales Invoices (for cash sales, collections handled by the petty cashier):
Invoice # 315 Dec. 30 P 120.00
328 Dec. 31 153.80
334 Jan. 2 121.36
(As a general rule, the petty cashier turn over the proceeds of cash sales to the general cashier on the 10th,
20th and last days of each month. Proceeds on these sales were recorded and deposited by the general
cashier.)
Postage Stamps:
Three one-peso stamps. The petty cashier handled postage stamps. These stamps represent the unused
stamps purchased on Voucher # 301.
1. How much is the petty cash fund shortage at December 31, 2018?
a. P 216.39 b. P 123.83 c. P 98.03 d. P 95.03
2. The adjusted petty cash fund balance of Khai Corporation at December 31, 2018 is:
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6. The cash in bank account of Happy Company disclosed a balance of P201,000 as of December 31. The bank statement
as of December 31 showed a balance of P106,000. Upon comparing the bank statement with cash records, the following
facts were developed.
a. The company’s account was charged on December 26 for a customer’s uncollectible check amounting to
P30,000.
b. A two-month, 17% P60,000 customer’s note dated October 25, discounted on November 25, was dishonored on
December 25, and the bank charged the company P62,000, which included a protest fee of P2,000.
c. A customer’s check for P15, 400 was entered as P14,500 by both the depositor and the bank but was later
corrected by the bank.
d. Check No. 1 142 for P12,425 was entered in the cash disbursement journal at P12,245 and check no. 156 for
P3,290 was entered as P32,900.
e. Bank service charges of P1,830 for December were not yet recorded on the books.
f. A bank memo stated that a customer’s note for P25,000 and interest of P1,000 had been collected on
December 28; and the bank charged P500. (No entry was made on the books when the note was sent to the
bank for collection).
g. Receipts on December 31 for P24,000 were deposited on January 2
h. The following checks were outstanding on Dec. 31:
No 123 P3,000 No 154 P4,000
143 2,000 157 6,000
144 7,000 159 7,000
147 3,000 169 5,000
i. A deposit of P20,000 was recorded by the bank on December 5, but it should have been recorded for Happee
Company rather than Happy Company
j. Petty cash of P10,000 was included in the Cash in Bank balance.
k. Proceed from cash sales of P60,000 for December 18 were stolen. The company expects to recover this
amount from the insurance company. The cash receipts were recorded in the books, but no entry was made for
the loss.
l. The December 21 deposit included a check for P20,000 that had been returned on December 15 marked NSF.
Happy Company had made no entry upon return of the check. The redeposit of the check on December 21 was
recorded in the cash receipts journal of Happy Company as a collection on account.
What is the total amount of cash should Happy Company report at year-end?
a. P73,000
b. P93, 000
c. P42, 670
d. P83, 000
7. The Joshtin Company had a weak internal control structure over its cash transactions. Facts about its cash position at
November 30, 2017 were as follows:
The cash books showed a balance of P 1,890,162, which included undeposited receipts. A credit memo of P 10,000 on
the bank’s records did not appear on the books of the company. The balance per bank statement was P 1,555,000.
Outstanding checks were No. 62 for P 11,625, No. 183 for P 15,000, No. 284 for P25,325, No. 8621 for P19,071, No.
8622 for P20,680, and No. 8632 for P14,528.
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The cashier stole all undeposited receipts in excess of P 379,441 and prepared the following reconciliation:
2. What is the correct amount of cash to be shown on the statement of financial position on November 30,
2017?
a. 1,828,212 b. 1,448,771 c. 1,900,162 d. 1,934,441
8. The Sunshine Corporation engaged your services to audit its accounts. In your examination of cash, you find that the
Cash account represents both cash on hand and cash in bank. You further noted that there is very poor internal control
over cash.
Your audit covers the period ended December 31, 2017. You made a cash count on January 15, 2018, and cash on hand
on this date was determined to be P52,000. Examination of the cashbooks and other evidences of transaction disclosed
the following:
1. January 1 through 15, 2018 collections per duplicate receipts, P199,000.
2. Total of duplicate deposit slips, all dated January 2 through 15, P110,000, includes a deposit representing
collections of December 31.
3. Cash book balance on December 31, 2017 is P465,000, representing both cash on hand and cash in bank.
7. An amount of P19,000 representing proceeds of a customer’s note was credited by bank, but is not yet taken up
in the company’s books.
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The company cashier presented to you the following reconciliation statement at December 2017, which he prepared:
Balance per books, December 31, 2017 P 456,000
Add: outstanding checks Number 252 P 6,000
254 4,000
280 25,000
301 900
319 15,000 50,900
Total P 506,900
Bank charges (1,500)
Undeposited collections (51,000)
Balance per bank P 454,400
1. How much is the amount of Cash shortage as of December 31, 2017?
a) 121,500 b) 123,500 c) 132,500 d) none of the above
2. How much is the additional shortage in January 2018?
a) 102,400 b) 85,000 c) 58,000 d) none of the above
3. Which is to be included in the audit adjusting entries at December 31, 2017?
a) Dr: Cash 1,600b) Cr: Cash 106,000 c) Cr: Loss 123,500 d) none of the above
9. Your client, Ozz Company, presented you with the following data:
Bank balances
November 30 P 2,500,000
December 31 3,100,000
Book balances
November 30 P 2,390,000
December 31 3,047,000
Deposits in transit
November 30 58,000
December 31 47,000
Outstanding checks
November 30 97,000
December 31 46,000
10. The accountant for the Joshtine Company assembled the following data:
June 30 July 31
Cash account balance P 15,822 P 39,745
Bank statement balance 107,082 137,817
Deposits in transit 8,201 12,880
Outstanding checks 27,718 30,112
Bank service charge 72 60
Customer's check deposited July 10, returned by bank
on July 16 marked NSF, and redeposited immediately;
no entry made on books for return or redeposit
8,250
Collection by bank of company's notes receivable 71,815 80,900
The bank statements and the company's cash records show these totals:
Based on the application of the necessary audit procedures and appreciation of the above data, you are to provide the
answers to the following:
a. P87,565 c. P107,082
b. (P3,695) d. P 15,822
11. You are auditing the cash in bank account of Pamela Manufacturing Company as of December 31, 2017.
Your examination revealed the following:
Your review of last month’s bank reconciliation and the current bank statement reveals the following.
1. Outstanding checks: November 30, 2017 P254,720
December 31, 2017 335,610
2. Deposit in transit: November 30, 2017 164,220
December 31, 2017 209,180
3. Check no 359 for Office Repairs was written for P6,950 but recorded in the cash disbursements journal as P9,650. The
bank deducted the check as P6,950. The error happened in November and is not yet recorded as of December 31.
4. A check written on the account of the Pamplona Company for P5,830 was deducted by the bank from the Pamela’s
account.
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5. Included with the bank statement was debit memorandum dated December 31 for P24,750 for interest on a note(loans)
taken out by the Pamela Manufacturing Company on November 30.
6. The service charge for the new checks has not been recorded.
7. The November 30 bank reconciliation showed as reconciling items a service charge of P3,500 and a customer’s DAIF
check for P34,900.
1. How much is the audit adjusted balance of Receipts as of December 31?
a) 9,198,720 b) 9,918,270 c) 9,891,720 d) 9,189,270 e) none of the above
2. How much is the audit adjusted balance of Disbursements as of December 31?
a) 8,601,610 b) 8,610,601 c) 8,601,601 d) 8,610,610 e) none of the above
3. Which is to be included in the audit adjusting entries?
a) Dr: Cash in Bank 2,700 b) Cr: Cash in bank 2,200 c) Dr: Interest expense 20,000 d) None of the above
12. Your audit senior instructed you to prepare a four column proof of cash receipts and disbursements for the month of
December, 2017.
The December bank statement, which has a beginning balance of P96,800, is reproduced below:
May Bank
Account Name: Joshtine Company
Date Debits Credits
December 01 P18,000
December 02 P7,200 40,000
December 04 24,000
pDecember 06 48,000
December 08 400,000 CM83
December 10 40,000 DM97
December 11 56,000
December 16 20,000
December 18 64,000
December 21 72,400
December 28 36,000 80,000
December 31 4,000 DM98 64,000 CM84
Totals P131,200 P842,400
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The company’s cash receipts and cash disbursements journals for the month of December 2017 are provided below:
Cash in Bank
Balance P58,640 12/31/2017 CDJ P304,000
12/01/2017 GJ 40,320
12/2017/2017 GJ 400,000
(CM83)
12/31/2017 CRJ 440,800
Based on the application of the necessary audit procedures and appreciation of the above data, you are to provide the
answers to the following: