It is as s {itis assumed that the cashier's accountability of P24,500 does 1-4 Answer: d Audit of Cash 23 Rot include the collection for the sweepstakes pool as well as customer's NSF check) DETERMINATION OF CASH ACCOUNTABILITY In your year-end audit of J.P. Rizal Corporation, the cashier showed a cash accountability of P12,000 as at December 31, 19x3. Selected transactions of the corporation for 19x3, Accounts written off Depreciation of fixed assets Disbursements for cost and expenses Income tax accrued Payment of bank loan Subscriptions receivable Subscribed capital stock Proceeds from short-term bank loan Purchases of fixed assets Sales (80% collected in 19x3) in summary form, follows: P 5,000 30,000 750,000 10,000 40,000 300,000 900,000 100,000 450,000 700,000 The Cashier's correct cash accountability at December 31, 19x3 was: c, P15,000 a. P 5,000 d. P20,000 b. P10,000 Solution: J.P. Rizal Corporation Total Cash debits: Collections from subscribed capital stock Subscribed capital stock Subscriptions receivable Proceeds from short-term bank loan Collections from sales (P 700,000 x 80%) Total Less: Total Cash credits Disbursements for cost and expenses Payment of bank loan Purchases of fixed assets Cashier's cash accountability Answer: d e. None of these (PhilCPA adapted) P900,000 P 600,000 100,000 560,000 P1,260,000 750,000 40,000 450,000 1,240,000 P_20,000Audit of 9 Cay F~S. nang mrconctiAtION, ADsUETED CAM | ont In preparing its bank reconciliation for the ™ has made available the following information ielae 6,250 of March 195, Boby Cony, ny Balance per bank statement, 3/31/x5 Deposit in transit, 3/31/x5 5,750 Outstanding checks, 3/31/x5 Credit erroneously recorded by bank 250 50 in Doby’s account, 3/12/x5 Bank service charges for March a March 31, 19x5? What should be the correct balance of cash 6.300 4. P3655) a. P35,250 'b. P36,250 Solution: Doby Company P36,050 Balance per bank statement, 3/31/x5 __ 6.250 Add: Deposit in transit pasta Total 5,750 Less: Outstanding Checks, 3/31/x5 PS, credit Erroneous recorded by bank in Doby's account, 3/12/x5 250 — 6.000 Correct Cash balance, 3/31/x5 P36,300 Answer: ¢ IT- 6. | DETERMINATION OF CASH BALANCE PER LEDGER, The following bank reconciliation is presented for the Kingston Company | for the month of November.19x5: Balance per bank statement, 11/30/x5 P18,040 Add: Deposit in transit 4 150 | Less: Outstanding checks a Bank credit recorded in error P6,300 | 20 _630 | Balance per books, 11/30/x5i Audit of Cash 25 Data for the month of December 19x5 follows Per bank December deposits P26,100 December disbursements 22,420 Balance, 12/31/x5 ‘ 21,720 All items that were outstanding as of November 30, cleared through the bank in December, including the bank credit. In addition, P2,500 in checks were Outstanding as of December 31, 19x5. What is the balance of cash per. books at December 31, 19x57 a. P19,220 b. P19,240 ©. P21,720 d. P24,220 Solution: Kingston Company Balance per books, 11/30/x5 P15,870 Add: Deposits for December Bank credits for December 26,100 Less; Deposit in transit, November 4,150 21,950 Total P37,820 Less: Disbursements for December Bank debits for December 22,420 Add: Outstanding checks, December 2,500 Total 24,920 Less: Outstanding checks, Nov. P6,300 Bank credit erroneously recorded in November 20 __ 6320 18,600 19.220 Balance per books, 12/31/x5 Answer: @