Problem 7 – 25:

At year-end, Tawiran Company reported cash which comprised the following:

Bond sinking fund cash 1,500,000

Checking account in Security Bank 3,155,000
Currency and coins awaiting deposit 1,135,000
Deposit in a bank closed by BSP 500,000
Petty cash fund (of which P 10,000 in the form of paid vouchers) 50,000
IOUs from officers and employees 175,000

What total amount should be reported as cash?

a) 4,440,000
b) 4,330,000
c) 4,830,000
d) 5,830,000
Problem 7 – 26:

Damsel Company reported a checkbook balance of P 4,000,000 on December 31, 2016.

 A customer check amounting P 200,000 dated December 30, 2016 was not included in
the checkbook balance.
 Another customer check for P 500,000 deposited on December 22, 2016 was included in
the checkbook balance but returned by the bank for insufficiency of fund.

This check was redeposited on December 26, 2016 and cleared two days later.

 Coins and currencies on hand amounted to P 300,000

 A P 400,000 check payable to supplier dated and recorded on December 30, 2016 was
mailed on January 15, 2017.
 A petty cash fund of P 50,000 with the following summary on December 31, 2016:

Coins and currencies 5,000

Petty cash vouchers 43,000
Return value of 20 cases of soft drinks 2,000
50,000

 A check of P 43,000 was drawn on December 31, 2016 payable to Petty Cash.

What total amount should be reported as “cash” on December 31, 2016?

a) 4,948,000
b) 4,548,000
c) 4,950,000
d) 4,900,000
Problem 7 – 27:

At year-end, Dwayne Company reported cash and cash equivalents comprising cash on hand
P 500,000, demand deposit P 4,000,000, certificate of time deposit P2,000,000, post-dated
customer check P 300,000, petty cash fund P 50,000, traveller’s check P 200,000, manager’s
check P 100,000 and money order P 150,000.

What total amount of cash should be reported at year – end?

a) 7,000,000
b) 4,800,000
c) 6,800,000
d) 5,000,000