Problem 2 – Proof of Cash

Indicate how each of the following items will be treated in a proof of cash.
Write only the PAIR of letters corresponding to your answers.

A. Add to May 31 bank balance

B. Deduct from May 31 bank balance
C. Add to June bank receipts
D. Deduct from June bank receipts
E. Add to June bank disbursements
F. Deduct from June bank disbursements
G. Add to June 30 bank balance
H. Deduct from June 30 bank balance
I. Add to May 31 book balance
J. Deduct from May 31 book balance
K. Add to June book receipts
L. Deduct from June book receipts
M. Add to June book disbursements
N. Deduct from June book disbursements
O. Add to June 30 book balance
P. Deduct from June 30 book balance

1. Deposit in transit, May 31

2. Deposit in transit, June 30
3. Outstanding checks, May 31
4. Outstanding checks, June 30
5. Bank service charges in May, recorded by the audit client in June
6. Bank service charges in June, recorded by the audit client in July
7. Bank credit memo in May, recorded by the audit client in June
8. Bank credit memo in June, recorded by the audit client in July
9. Erroneous bank credit in June subsequently charged in July
10. Erroneous bank credit in May, subsequently charged in June
11. Erroneous bank credit in June, subsequently charged in June
12. Erroneous bank charge in May, corrected by a credit in June
13. Erroneous bank charge in June, corrected by a credit in July
14. Erroneous bank charge in June, corrected by a credit in June
15. Check issued in May for P20,000, recorded by the client as P2,000. Error was corrected
in June.
16. Check issued in May for P25,000, recorded by the client as P52,000. Error was
corrected in June.
17. Check issued in June for P20,000 recorded by the client as P2,000. Error was corrected
in June.
18. Customer's DAIF check returned by the bank in May. Client recorded it in June.
19. Customer's DAIF check returned by the bank in June and subsequently redeposited in
June. Client makes no entry for the return or redeposit.
20. Check written in June as disbursement. Client was able to issue the check in July.

21. Check issued in May, lacking countersignature, returned by the payee for replacement in
June. Client made no entry for the cancellation and replacement. The original check was listed
as outstanding at May 31.
 ACCTG PRE 02 Auditing and Assurance Concepts & Applications 1

Name: Nicelle Nicole Noreen Nuñez Yr. & Block: BSA3 Block B

1. Deposit in transit, May 31 A D

2. Deposit in transit, June 30 C  G 

3. Outstanding checks, May 31 B F

4. Outstanding checks, June 30 E H 

5. Bank service charges in May, recorded by the audit client in June J N

6. Bank service charges in June, recorded by the audit client in July M P 

7. Bank credit memo in May, recorded by the audit client in June I  L

8. Bank credit memo in June, recorded by the audit client in July O K 

9. Erroneous bank credit in June subsequently charged in July H D 

10.  Erroneous bank credit in May, subsequently charged in June B F 

11.  Erroneous bank credit in June, subsequently charged in June H F 

12.  Erroneous bank charge in May, corrected by a credit in June A D 

13.  Erroneous bank charge in June, corrected by a credit in July G F

14.  Erroneous bank charge in June, corrected by a credit in June G D 

15.  Check issued in May for P20,000, recorded by the client as P2,000. Error was
corrected in June. J N

16.  Check issued in May for P25,000, recorded by the client as P52,000. Error was
corrected in June. I L 

17.  Check issued in June for P20,000 recorded by the client as P2,000. Error was
corrected in June. P N 

18.  Customer's DAIF check returned by the bank in May. Client recorded it in June. J N 

19.  Customer's DAIF check returned by the bank in June and subsequently redeposited in
June. Client makes no entry for the return or redeposit. - - 

20.  Check written in June as disbursement. Client was able to issue the check in July. H E 

21.  Check issued in May, lacking countersignature, returned by the payee for replacement
in June. Client made no entry for the cancellation and replacement. The original check
was listed as outstanding at May 31. J N