CASH and Non-Cash Items

(dagdag po ito sa mga nabanggit

na)
* Para madali nyo matutunan ito,
kung makaka-encounter ka ng
hindi mo talaga alam na item,
itanong mo lang sa sarili mo:
readily available ba ito pag
kinailangan kong gastusin? Yun
ang lagi mong itatanong sa sarili
mo para maconsider mo sya as
cash.
CASH ITEMS:
Cash salapi. Cold cold cash
Change Fund barya-baryang
panukli
Petty Cash Fund gamit sa
maliliit na gastusin. Kaya nga
petty.

Current Account bank account

used by the company for
collections/disbursements. Parang
savings account
Payroll Account used by the
company to pay employees
compensation (nakakahilo
magreconcile nito pag malaking
kumpanya ang hawak mo, hahaha)
Travelers Check checked
released by the bank that can be
used at any country. Minsan, ang
mga travelers o manlalakbay,
diba hindi naman agad sila
nagkakaroon ng local currency ng
bansang pinupuntahan nila unless
pumunta agad sila sa bank at
magpapalit. Eh papano kung
nagutom sila? Di naman nila
pwedeng ipambayad ang US

Dollars sa China. So, para may

panggastos sila for the mean time
na wala pa silang cash, maari
nilang gamitin yung travelers
check as a legal tender. Kaya
pang-traveler talaga sya.
Crossed Check ito yung may
dalawang diagonal parallel line na
naka linya sa upper-left hand
corner ng check. Cash naman ito.
Iyon nga lang, hindi sya pedeng
ipapalit sa cash, pede lang sya
ideposito sa bank. Eh papanong
naconsider na cash to kung hindi
pede ipapalit agad na cash? Eh
pede mo namang ideposito ito
tapos iwithdraw mo diba? Kaya
cash to.
Replenishment Check syempre
cash to.

Treasury bills:
Current if maturity from DATE of
PURCHASE is within 3 months
(cash equivalents)
TIME DEPOSIT/Money Market
Instruments
Current If 3 months or less (cash
equivalent)
Cashiers Check considered as
cash ito kasi guaranteed ito ng
bank, and due and demandable.
Managers Check pareho lang
to ng Casheirs Check.
*eh what makes the cashiers
check and managers check so
special compared to a regular
check? Well, ang CC or MC ay
guaranteed ng bank. Unlike ng
regular check, ang regular check

(customers check) ay maaring

tumalbog.
Unrealeased Checks ito yung
mga dapat ipangbabayad sa mga
creditor pero hindi pa na-rerelease
so hawak mo pa yung cheke. Kung
hawak mo pa yung cheke, e di cash
mo pa yun. Sa Law, may mga rules
and regulations regarding
payment/endorsement of check.
Isa sa mga proof na bayad na ang
debtor ay pag nasa creditor na ang
check.
Deposits in Foreign Banks
dapat unrestricted sya para
considered as cash. It should be
measured at its spot rate or the
exchange rate at the balance sheet
date.

Cash Appropriated for short

term purposes kahit na
appropriated na sya, pero kung ang
purpose ay for short term lang
naman, classified as cash parin
sya. Tandaan nyo lang sa
appropriation ang like father like
son principle. Kung para saan ang
purpose ng appropriation (whether
short or long term) ay siya rin ang
appropriation.
Compensating Balance ito
yung minimum amount na dapat
mo ideposito sa bank. Pag bumaba
ka sa compensating balance,
magkakaroon ka ng bank charges
(parang yung nangyari sa pera ko
dati nung bata ako kaya naubos
heheh) as long as NOT
RESTRICTED, cash parin sya.

NON CASH items

Postage stamps hindi ito
pedeng ipambayad kay aling nena
pambili ng kendi. Hindi sya cash.
Prepaid expense.
Treasury bills:
Non- Current
if maturity from DATE of
PURCHASE is more than 3
months (temporary investment)
TIME DEPOSIT/Money Market
Instruments
Non-current if more than 3
months (temporary investments)
Post-dated check since postdated sya, ibig sabihin, dated sya
on a future date. Ang cheke, nonnegotiable o hindi mo pedeng
ipapalit sa banko when the date

written on the face of the check ay

hindi pa ngayon (or future dated).
Ibalik sa Accounts Payable(payor)
or Accounts Receivable(payee)
kung nag-entry na.
NSF Check tumalbog na cheke.
Restricted Deposits in Foreign
Banks tunog palang, hindi na
cash. Restricted kasi sya, hindi
readily available.
Cash Appropriated for LONG
term purposes ulit, like father,
like son. Kung para saan ang
purpose, sya rin ang classification.
Sinking fund (or sometimes
Bond Sinking Fund) is
comprised of cash and investment
securities that have been
accumulated for the stated

purpose of repaying a specific loan

(Intermediate Accounting, Stice ,
Stice & Skousen). So, in short,
appropriated sya for long term
purposes.
Stock Certificates baka may
makulit na prof na magsali nito eh.
Hindi to cash at HINDI rin ito
negotiable instrument. Ito lang ay
ang proof na may hawak kang
stocks. Kasi ang stocks hindi yan
barya barya o ginto ginto na
ipinamimigay pag bumili ka sa
isang korporasyon. Ang stocks ay
intangible (o, hindi intangible asset
ah ginamit ko lang yung word na
intangible as a description, wag
malito) kasi hindi ito nakikita o
nahahawakan. So para may proof
ka na may hawak ka ng stocks,

binibigyan ka ng issuing
corporation ng Stock Certificate at
dun naka-state kung ilang stocks
ang hawak mo at kung magkakano.
Stale Check ito yung checks na
hindi napapalitan ng payee (o
binayaran) for a long time (usually
ang silent rule ay 6 months, unless
otherwise specified). Hindi ito cash
kasi usually ang gagawin ng
kumpanyang nag-issue nito ay
mag-iissue ng stop payment
order sa bank. So, babalik sa cash
yan ng issuing company. Hindi na
ito cash on the part of the payee.
Magiging receivable ulit yung
amount na yun kasi nga na-stale,
napanis yung cheke.
As far as I can remember, ito yung
mga weird terms sa cash na

maaring makapagpalito sa mga

estudyante.
Follow-up Problem
Author: luvrgurl
Grain comp. ledger showed a
balnce of P2,205,600 in its cash
account on dec. 31,2009 . included
in this balance are the ff. items:
DAIF checks returned by bank
P20,000
Saving account P750000
IOUs P1,200
postage stamps 600
bank draft 10,000
cash on hand 30,000
cash in sinking fund 500,000
customerscheck dated jan.2010
5,400
travel advances 4,000
travels check 8,000

determine the total amt. that

should be in cash balance
at dec.31,2009
source: Intermediate Accounting
Vol 1 2010 Robles Empleo
P. 69 Problem 2-3
Hello, eto ulit ako. To answer the
problem posted below:
Sabi, included in this cash
balance. So ibig sabihin the
enumerated amounts are
incorporated dun sa P2,205,600.
So, dapat alam natin kung ano ang
cash at kung ano ang hindi. Isa
isahin natin:
DAIF CHECKS: deduct the 20,000
from the balance. Bakit? Kasi
tumalbog yung check ng customer,

therefore balik sya sa receivables

dahil wala naman tayo nakolekta.
Savings Account: do nothing. Its
cash and its already included in
the cash balance.
IOUs: deduct the P1,200. Bakit?
kasi pautang natin to sa mga tao
kaya nga I owe you, meaning to
say, somebody owes us money,
therefore must be classified as AR
and not Cash.
Postage Stamp: deduct the 600.
Bakit? Dahil, uulitin ko, hindi ka
makakabili ng kendi sa tindahan ni
aling Nena na bayad mo ay Stamp,
baka batuhin ka pa ng bote ng
suka, hahaha. Prepaid Expense ang
Stamps, hindi cash.

Bank Draft: do nothing. Ano ba ang

bank draft? Cash equivalent yan.
Para yang cashiers check. Pay to
cash. Kunyari, bibili ka ng worth
$2,000,000 na inventory.
Magdadala ka ba ng cash worth
2M? or credit card? Syempre hindi.
You may pay either through a
check or a bank draft. So good as
cash to.
Cash on hand: obvious, do nothing.
Cash in Sinking Fund: deduct the
500,000. Bakit? Though its cash,
but its restricted for long term
purposes. Following the principle of
Res Perit Domino, meaning thing
follows its master, its also
considered as a Long Term Asset
Customers Check dated Jan. 2010:
Syempre, deduct the 5,400. Bakit?

Kasi post dated ang check. Hindi pa

sya readily convertible into cash.
Therefore, still considered as an
AR.
Travel Advances: deduct the 4.000.
Syempre, hindi naman to cash kasi
nga advances meaning binigay
mo yung pera for travel purposes
at ibabalik sayo, thus, its an AR.
Travelers Check (not travels
check): syempre included as cash
to. Usually eto yung cheke na
ginagamit ng mga nangingibang
bansa para maiwasan ang hassle
ng pagpapapalit ng foreign
currency.
Therefore:
2,205,600 unadjusted ending cash
balance

(20,000) DAIF
(1,200)
(600)

IOU
Postages

(500,000) Sinking Fund

(5,400) Postdated Checks
(4,000) Travel Advances
__________