FUNDAMENTAL

S OF
ACCOUNTING
MARY GRACE AYING
Problem 1 Pounds Co. issued the

following checks as recorded in its

Cash Disbursement Journal, for the

month of May 2016:

Moreover, Pounds Co. has received

this bank statement and the following

checks were presented and paid by

the bank:

Identify the checks outstanding as of the end of May 2016:

Computation:

P 0

+ 2000

300

4500

8700

1200

16,700 Total Checks that should have been cleared

- 2,000

8,700

1,200

4,800 Outstanding Checks, end of the month

 Problem 2: Presented below is the

cash receipts journal of STEC

Merchandising. This reflects the

following collections for the month

of April 2016:

It is the policy of the company to

deposit collection within the

following day from the date of

collection. The bank statement for

April 2016 revealed following

deposits made: 

Compute for the deposit in transit or undeposited collection as of end of

April 2016.

P 0

+ 4,000

2,000

8,900

7,800

3,200

25,900 Total Amounts that should have been deposited

- 4,000

2,000

8,900

7,800

3,200

P 0 Deposit on Transit, End of the Month