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POSTED IN CASH & NON-CASH ITEMS
Cash & Non-Cash Items
CASH and Non-Cash Items
(dagdag po ito sa mga nabanggit na)

* Para madali nyo matutunan ito, kung makaka-encounter ka ng hindi mo talaga alam na item,
itanong mo lang sa sarili mo: “readily available ba ito pag kinailangan kong gastusin?” Yun ang
lagi mong itatanong sa sarili mo para maconsider mo sya as cash.

CASH ITEMS:

Cash – salapi. Cold cold cash…

Change Fund – barya-baryang panukli

Petty Cash Fund – gamit sa maliliit na gastusin. Kaya nga “petty”.

Current Account – bank account used by the company for collections/disbursements. Parang
savings account
Payroll Account – used by the company to pay employee’s compensation (nakakahilo
magreconcile nito pag malaking kumpanya ang hawak mo, hahaha)

Traveler’s Check – checked released by the bank that can be used at any country. Minsan, ang
mga “travelers” o manlalakbay, diba hindi naman agad sila nagkakaroon ng local currency ng
bansang pinupuntahan nila unless pumunta agad sila sa bank at magpapalit. Eh papano kung
nagutom sila? Di naman nila pwedeng ipambayad ang US Dollars sa China. So, para may
panggastos sila for the mean time na wala pa silang cash, maari nilang gamitin yung traveler’s
check as a legal tender. Kaya pang-“traveler” talaga sya.

Crossed Check – ito yung may dalawang diagonal parallel line na naka linya sa upper-left hand
corner ng check. Cash naman ito. Iyon nga lang, hindi sya pedeng ipapalit sa cash, pede lang sya
ideposito sa bank. Eh papanong naconsider na cash to kung hindi pede ipapalit agad na cash? Eh
pede mo namang ideposito ito tapos iwithdraw mo diba? Kaya cash to.

Replenishment Check – syempre cash to.

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Treasury bills:
Current – if maturity from DATE of PURCHASE is within 3 months (cash equivalents)
TIME DEPOSIT/Money Market Instruments
Current – If 3 months or less (cash equivalent)

Cashier’s Check – considered as cash ito kasi guaranteed ito ng bank, and due and demandable.

Manager’s Check – pareho lang to ng Casheir’s Check.

*eh what makes the cashier’s check and manager’s check so special compared to a regular
check? Well, ang CC or MC ay “guaranteed” ng bank. Unlike ng regular check, ang regular
check (customer’s check) ay maaring tumalbog.

Unrealeased Checks – ito yung mga dapat ipangbabayad sa mga creditor pero hindi pa na-
rerelease so hawak mo pa yung cheke. Kung hawak mo pa yung cheke, e di cash mo pa yun. Sa
Law, may mga rules and regulations regarding payment/endorsement of check. Isa sa mga proof
na bayad na ang debtor ay pag nasa creditor na ang check.

Deposits in Foreign Banks – dapat unrestricted sya para considered as cash. It should be
measured at its spot rate or the exchange rate at the balance sheet date.

Cash Appropriated for short term purposes – kahit na appropriated na sya, pero kung ang purpose
ay for short term lang naman, classified as cash parin sya. Tandaan nyo lang sa appropriation ang
“like father like son” principle. Kung para saan ang purpose ng appropriation (whether short or
long term) ay siya rin ang appropriation.

Compensating Balance – ito yung minimum amount na dapat mo ideposito sa bank. Pag bumaba
ka sa compensating balance, magkakaroon ka ng bank charges (parang yung nangyari sa pera ko
dati nung bata ako kaya naubos  heheh) as long as NOT RESTRICTED, cash parin sya.

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NON CASH items

Postage stamps – hindi ito pedeng ipambayad kay aling nena pambili ng kendi. Hindi sya cash.
Prepaid expense.

Treasury bills:
Non- Current – if maturity from DATE of PURCHASE is more than 3 months (temporary
investment)

TIME DEPOSIT/Money Market Instruments

Non-current – if more than 3 months (temporary investments)
Post-dated check – since “post”-dated sya, ibig sabihin, dated sya on a future date. Ang cheke,
non-negotiable o hindi mo pedeng ipapalit sa banko when the date written on the face of the check
ay hindi pa ngayon (or future dated). Ibalik sa Accounts Payable(payor) or Accounts
Receivable(payee) kung nag-entry na.

NSF Check – tumalbog na cheke.

Restricted Deposits in Foreign Banks – tunog palang, hindi na cash. Restricted kasi sya, hindi
readily available.

Cash Appropriated for LONG term purposes – ulit, “like father, like son”. Kung para saan ang
purpose, sya rin ang classification.

Sinking fund (or sometimes Bond Sinking Fund) – is comprised of cash and investment
securities that have been accumulated for the stated purpose of repaying a specific loan
(Intermediate Accounting, Stice , Stice & Skousen). So, in short, appropriated sya for long term
purposes.

Stock Certificates – baka may makulit na prof na magsali nito eh. Hindi to cash at HINDI rin ito
negotiable instrument. Ito lang ay ang proof na may hawak kang stocks. Kasi ang “stocks”
hindi yan barya barya o ginto ginto na ipinamimigay pag bumili ka sa isang korporasyon. Ang
stocks ay intangible (o, hindi intangible asset ah ginamit ko lang yung word na “intangible” as a
description, wag malito) kasi hindi ito nakikita o nahahawakan. So para may proof ka na may
hawak ka ng stocks, binibigyan ka ng issuing corporation ng Stock Certificate at dun naka-state
kung ilang stocks ang hawak mo at kung magkakano.

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Stale Check – ito yung checks na hindi napapalitan ng payee (o binayaran) for a long time
(usually ang silent rule ay 6 months, unless otherwise specified). Hindi ito cash kasi usually ang
gagawin ng kumpanyang nag-issue nito ay mag-iissue ng “stop payment order” sa bank. So,
babalik sa cash yan ng issuing company. Hindi na ito cash on the part of the payee. Magiging
receivable ulit yung amount na yun kasi nga na-stale, “napanis” yung cheke.

As far as I can remember, ito yung mga weird terms sa cash na

maaring makapagpalito sa mga estudyante.

Follow-up Problem

Author: luvrgurl

Grain comp. ledger showed a balnce of P2,205,600 in its “cash” account on dec. 31,2009 .
included in this balance are the ff. items:
DAIF checks returned by bank P20,000
Saving account P750000
IOUs P1,200
postage stamps 600
bank draft 10,000
cash on hand 30,000
cash in sinking fund 500,000
customers’check dated jan.2010 5,400
travel advances 4,000
travel’s check 8,000

determine the total amt. that should be in cash balance at dec.31,2009

source: Intermediate Accounting Vol 1 2010 Robles Empleo

P. 69 Problem 2-3

Hello, eto ulit ako. To answer the problem posted below:

Sabi, “included in this cash balance”. So ibig sabihin the enumerated amounts are incorporated
dun sa P2,205,600. So, dapat alam natin kung ano ang cash at kung ano ang hindi. Isa isahin natin:

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DAIF CHECKS: deduct the 20,000 from the balance. Bakit? Kasi tumalbog yung check ng
customer, therefore balik sya sa receivables dahil wala naman tayo nakolekta.

Savings Account: do nothing. It’s cash and it’s already included in the cash balance.

IOU’s: deduct the P1,200. Bakit? kasi pautang natin to sa mga tao kaya nga “I owe you”,
meaning to say, somebody owes us money, therefore must be classified as AR and not Cash.

Postage Stamp: deduct the 600. Bakit? Dahil, uulitin ko, hindi ka makakabili ng kendi sa tindahan
ni aling Nena na bayad mo ay Stamp, baka batuhin ka pa ng bote ng suka, hahaha. Prepaid
Expense ang Stamps, hindi cash.

Bank Draft: do nothing. Ano ba ang bank draft? Cash equivalent yan. Para yang cashier’s check.
Pay to cash. Kunyari, bibili ka ng worth $2,000,000 na inventory. Magdadala ka ba ng cash worth
2M? or credit card? Syempre hindi. You may pay either through a check or a bank draft. So good
as cash to.

Cash on hand: obvious, do nothing.

Cash in Sinking Fund: deduct the 500,000. Bakit? Though it’s cash, but it’s restricted for long
term purposes. Following the principle of “Res Perit Domino”, meaning “thing follows it’s
master”, it’s also considered as a Long Term Asset

Customers’ Check dated Jan. 2010: Syempre, deduct the 5,400. Bakit? Kasi post dated ang
check. Hindi pa sya readily convertible into cash. Therefore, still considered as an AR.

Travel Advances: deduct the 4.000. Syempre, hindi naman to cash kasi nga “advances”
meaning binigay mo yung pera for travel purposes at ibabalik sayo, thus, it’s an AR.

Traveler’s Check (not travel’s check): syempre included as cash to. Usually eto yung cheke na
ginagamit ng mga nangingibang bansa para maiwasan ang hassle ng pagpapapalit ng foreign
currency.

Therefore:

2,205,600 unadjusted ending cash balance

(20,000) DAIF

(1,200) IOU

(600) Postages

(500,000) Sinking Fund

(5,400) Postdated Checks

(4,000) Travel Advances

__________

1,674,400 is the correct Cash Balance

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Kuya Joseph's Blog
Petty Cash, Part 3
josephmestrada
10 years ago
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PART III – Weird items sa petty cash and their appropriate treatments

Acceptance Check – pag nagpasweldo yung kumpanya, minsan cheke. Ngayon, yung mga
trabahador, minsan tinatamad magpunta sa banko para i-cash yung cheke nila. So ang ginagawa,
lumalapit kay petty cash custodian. So, si petty cash custodian naman, tinatanggap,
ina-“accept” yung cheke nila at pinapalitan. Kaya acceptance Check. Tanda to ng mahinang
internal control. Usually, ang acceptance check, due and demandable yan so pede narin sya
iconsider as Cash in Petty cash (parehas ng treatment sa bills and coins) kasi kahit anong oras
pede ipapalit sa bank. UNLESS sinabing post dated yung cheke or tumalbog yung Check.

Postdated Check – yun ung mga cheke na pinapapalitan sa petty cash (tigas ng ulo no, bawal nga
to eh) na hindi pa due and demandable so, Receivable parin sya.

NSF Check – eto ang malupet, pinapalitan na yung cheke sa petty cash tapos bigalng tumalbog.
Syempre, Receivable sya dun sa nagpapalit ng Cheke.

Postage Stamps – syempre Prepaid expense yan. Hindi yan considered as cash in petty cash na
tulad ng bills and coins. Baket, pag bumili ka ba ng kendi kina aling nena, papayag sya na ibayad
mo yung Stamp? Diba hindi? So, prepaid expenses siya.

Certified Check – certified naman yung cheke, kikilanin ng bank so due and demandable sya so,
Cash in Petty Cash sya.

Birthday/ Wedding envelope – see explanation above:

Empty – ibawas sa bills and coins kasi malamang napahalo yun dun
May laman – ignore mo lang

Expense vouchers – hindi naman weird to. Dapat talaga nag-iisue ng voucher yung petty cash
custodian every disbursement para alam kung saan ginagastos.

IOU – simply stated “I Owe You” or “vale”. Narinig mo na ba yung “babale muna ako”,
or “bumale ka muna”. Yun ung VALE (pronounced as va-le not veyl). Simply put, umutang ang
Empleyado. So, Receivable sya.

Hindi all-inclusive to ah. baka may hindi pa ako namention. Kung meron pa, just post it here,
papaliwanag ko kung ano yun.
eto ang inyong kuya CPA, joseph!

Post lang ng tanong!

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Categories: Petty Cash, Part 3

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