SAMPLE PROBLEMS

PROBLEM A

In lieu with your audit of Bonne Chance Company for the year ended December 31, 2019, you gathered the
following information:

Current account at BDO P 1,500,000

Current account at Landbank (75,000)
Payroll account 375,000
Foreign bank account - restricted (in USD) 15,000
Postage stamps 750
Employee's post-dated check 3,000
IOU from a key officer 7,500
Credit memo from a vendor for a purchase return 15,000
Traveler's check 37,500
Customer's not-sufficient-funds check 11,250
Money Orders 22,500
Petty cash fund (P3,000 in currency and
expense vouchers for P4,500) 7,500
Treasury bills, due 3/31/2020 (purchased 12/31/2019) 150,000
Treasury bills, due 1/31/2020 (purchased 1/1/2019) 225,000
Change fund 2,500
Bond sinking fund 250,000

The current exchange rate as of December 31, 2019 is at P50 for every 1 USD.

What is the total cash and cash equivalent to be reported by the company in its December 31, 2019 Statement
of Financial Position?

PROBLEM B

Bonjour Company
General and Petty Cash Count
Audit Year: 2019
Date of Count: January 5, 2020, 10:00am

Bills and Coins:

Denomination Pieces
P 500 218
100 454
50 610
20 1,008
10 20
5 608
1 1,040
0.25 4,032

Checks:
Maker Payee Date Amount
Tissot - Customer Bonjour Company 12/30/2019 P 23,840
Castro - Customer Bonjour Company 12/26/2019 25,010
Allez - Customer Bonjour Company 01/02/2020 11,414
Petra - Customer Bonjour Company 12/21/2019 26,700
Bonjour Company Bonne Chance Corp. 12/27/2019 29,000
Salut - Officer Bearer 01/05/2020 620
Bueno* Cash 12/29/2019 520
*Amount is for a return of travel advance made to the employee in an earlier period.

Vouchers and IOUS:

Paid to Date Amount

BWD 1/2/2020 P 70
BENECO 12/20/2019 300
Eurotel - Christmas Party 12/23/2019 12,580
Vina - IOU 12/27/2019 600

Additional Notes:

1. Cash sales invoice (all currencies, No. 17903 to 18112), P 201,000.

2. Official Receipts
Number Amount Form of Collection
31250 P 1,120 Cash
31251 25,010 Check
31252 2,404 Cash
31253 23,840 Check
31254 26,700 Check
3. Stamps of various denomination amounted to P 160.
4. A notation on an envelope is "Proceeds from employee contribution for Christmas Party, P 19,000".
5. Petty cash per ledger, P 30,000.

Questions:
1. How much is the petty cash shortage as of January 5, 2020?
2. What is the credit adjustment to correct the petty cash fund?
3. What is the adjusted petty cash fund as of December 31, 2019?

PROBLEM C

The cash account of NUNAL COMPANY shows the following activities:

Date Debit Credit Balance

Nov. 30 Balance P345,000

Dec. 2 November bank charges P 150 344,850

4 November bank credit for notes

receivable collected P 30,000 374,850

15 NSF check 3,900 370,950

20 Loan proceeds 145,500 516,450

21 December bank charges 180 516,270

31 Cash receipts book 2,121,900 2,638,170

31 Cash disbursements book 1,224,000 1,414,170

CASH BOOKS

RECEIPTS PAYMENTS

Date OR No. Amount Check No. Amount

Dec. 1 110-120 P 33,000 801 P 6,000

2 121-136 63,900 802 9,000

3 137-150 60,000 803 3,000

 4 151-165 168,000 804 9,000

5 166-190 117,000 805 36,000

8 191-210 198,000 806 57,000

9 211-232 264,000 807 78,000

10 233-250 231,000 808 90,000

11 251-275 63,000 809 183,000

12 276-300 90,000 810 21,000

15 301-309 165,000 811 24,000

16 310-350 24,000 812 48,000

17 351-390 57,000 813 60,000

18 391-420 27,000 814 66,000

19 421-480 51,000 816 108,000

22 481-500 63,000 817 33,000

23 501-525 96,000 818 150,000

23 - - 819 21,000

23 - - 820 12,000

26 526-555 222,000 821 9,000

28 556-611 15,000 822 36,000

28 - - 823 39,000

29 612-630 114,000 824 87,000

29 - - 825 6,000

29 - - 826 33,000

Totals P2,121,900 P1,224,000

BANK STATEMENT

Date Check Charges Credits

Dec. 1 792 P 7,500 P 25,500

2 802 9,000 33,000

3 - - 63,900

4 804 9,000 60,000

5 EC 243,000 243,000

8 805 36,000 285,000

9 CM 16 - 36,000

10 799 21,150 462,000

11 DM 57 3.900 231,000

12 808 90,000 63,000

 15 803 3,000 -

16 809 183,000 255,000

17 DM 61 180 24,000

18 813 60,000 57,000

19 CM 20 - 145,500

22 815 18,000 -

23 816 108,000 141,000

23 811 24,000 -

23 801 6,000 -

26 814 66,000 96,000

28 818 150,000 222,000

28 DM 112 360 -

29 821 9,000 15,000

29 CM 36 - 36,000

29 820 12,000 -

Totals P1,059,090 P2,493,900

Additional information:

1. DMs 61 and 112 are for service charges.

2. EC is error corrected.

3. DM 57 is for an NSF check.

4. CM 20 is for loan proceeds, net of P450 interest charges for 90 days.

5. CM 16 is for the correction of an erroneous November bank charge.

6. CM 36 is for customers’ notes collected by bank in December.

7. Bank balance on December 31 is P1,776,810

Based on the preceding information, determine the following:

1. Outstanding checks at November 30

A. P39,150 B. P28,650 C. P21,150 D. P46,650

2. Outstanding checks at December 31

A. P459,000 B. P477,000 C. P441,000 D. P487,650

3. Deposit in transit at November 30

A. P58,500 B. P145,500 C. P 0 D. P25,500

4. Deposit in transit at December 31

A. P114,000 B. P139,500 C. P132,000 D. P 0
5. Adjusted book balance at November 30
A. P410,850 B. P345,000 C. P375,000 D. P374,850

6. Adjusted bank receipts for the month of December

A. P2,297,400 B. P2,291,400 C. P2,303,400 D. P2,321,400

7. Adjusted book disbursements for the month of December

A. P1,228,440 B. P1,246,440 C. P1,210,440 D. P1,246,620

8. Adjusted bank balance at December 31

A. P1,449,810 B. P1,674,810 C. P1,431,810 D. P1,776,810

9. Unadjusted bank balance at November 30

A. P555,060 B. P94,560 C. P1,776,810 D. P342,000

10. The best evidence regarding year-end bank balances is documented in the
A. Cutoff bank statements.
B. Bank reconciliations.
C. Interbank transfer schedule.
D. Bank deposit lead schedule.