PROBLEM 1: You are assigned to audit the cash and cash equivalents of CASHA Unlimited.

You
were surprised to note that the Company had maintained several cash funds and bank accounts
with different purposes. The following are the list prepared by the accountant recorded as "Cash"
as at December 31, 2020

Petty cash fund P50,000

Change fund 10,000
Revolving fund 80,000
Plant expansion fund 1,500,000
COVID fund 500,000
Sinking fund No. 011894 600,000
Sinking fund No. 011795 450,000
Bank A - Payroll account 2,000,000
Bank A - Savings account 3,500,000
Bank A - Checking account 3,000,000
Bank B - Checking account (500,000)
Bank B - Savings account 1,000,000
Bank C - Checking account (200,000)
Bank D - Closed bank 1,300,000
Bank E - Tax account 900,000
Bank F - USD account 2,250,000
Treasury bills 350,000
Commercial papers 300,000
Money market placements No. 032312 750,000
Money market placements No. 122011 800,000
P18,640,000

Upon examination of relevant documents and confirmation from the banks, you noted the following
additional information:

1. Petty cash fund consists of the following:

Coins 5,000
Bills 17,500
Postage stamps 1,500
IOUs 4,500
Employee's vale 6,000
Check No. 053117 issued in the name of Cashier to be used for
replenishment, dated December 28, 2020 7,500
Check No. 040716 issued in the name of Company from a customer,
dated March 31, 2020 2,500
An envelope with the names of the employees which contributed for
the Christmas Party 5,500
50,000

2. According to the company policy, petty cash fund is intended to pay for expenses not exceeding
P5,000 while the revolving fund is intended to pay for expenses ranging from P5,000 to
P10,000. Any excess of P10,000 should be made through check.

3. The plant expansion fund is intended to be disbursed for an equipment expected to be acquired
in January 31, 2021.

4. The COVID fund is set up to answer for any contingencies that may affect the employees due
to the pandemic.

5. Sinking fund No. 011894 is intended to settle a loan from Bank A that is payable on December
31, 2021.
6. Sinking fund No. 011795 is intended to settle a loan from Bank B that is payable on February
28, 2021. In December 28, 2020, a meeting was made with Bank B and both parties agreed
to refinance the loan by issuing new note to be payable on February 28, 2022.

7. During 2020, Bank D filed bankruptcy with the court. Upon liquidation, cash still realizable by
the Bank D's client is up to 50% only.

8. Based on the contract signed with Bank F, any withdrawals from the USD account is subject to
the mutual agreement of the parties until 2025

9. Issuance date and maturity of money market placements:

Issuance Maturity
Money market placements No. 032312 11/01/2020 02/28/2020
Money market placements No. 122011 12/15/2020 03/15/2020

10.Other items not included in the above accounts are as follows:

Bank draft 75,000

Money order 125,000
Check No. 011414 in the name of the company, dated January 20, 2021 85,000
Check No. 0324514 in the name of the company, dated December 21, 2020 25,000
Investment in ordinary share of Company AA, issued on December 31, 2020 950,000
Investment in preferred share of Company BB, issued on November 25,
2020, mandatorily redeemable on January 31, 2021 325,000

REQUIREMENTS: Compute for the balance of the following as at December 31, 2020
1. Total Cash
2. Total Cash Equivalents
3. Total Cash and Cash Equivalents

PROBLEM 2: The cash account in the ledger of TABA Company had a balance of P105,600 at
December 31, 20x8. An examination of the account, however, disclosed the following:
1. The sales book was left open up to January 5, 20x9, and cash sales totaling P15,000 were
considered as sales in December.
2. Checks of P9,300 in payment of liabilities were prepared before December 31, 20x8, recorded
in the books, but not mailed or delivered to payees
3. Post-dated customer collection checks totaling P7,800 are being held by the cashier as part of
cash. The company's experience shows that post-dated checks are eventually realized.
4. Customer's check for P1,500 deposited with but returned by bank, "SVSF", on December 27,
20x8. Return was not recorded in the books.
5. The cash account includes P40,000 earmarked for the purchase of a mini-computer which will
soon be delivered.
PROBLEM 3: The following data were taken from SISC's check register for the month
of April. SISC's bank reconciliation for March showed one outstanding check, check No. 178
for P2,150 (written on March 20), and one deposit in transit for P4,350 (made on March
31).

Date Item Checks Deposits Balance

20x4
April 1 Beginning Balance 6,150
1 Deposit 26,167 32,317
1 Check No. 179 250 32,567
4 Check No. 180 10,673 21,898
27 Deposit 11,774 33,672
29 Check No. 181 13,217 20,490

The following is from SISC's bank statement for April:

Date Item Checks Deposits Balance

20x4
April 1 Beginning Balance 3.950
3 Check No. 179 250 3,700
3 Deposit 4,350 8,050
5 Check No. 180 10,673 (2,623)
5 Automatic loan 8,150 5,527
5 Deposit 26,417 31,944
20 NSF check 1,000 30,944
20 Service charge 600 30,344
30 Interest 82 30,426

REQUIREMENT: Compute for the adjusted cash balance as of April 30