AUDIT OF CASH

You were able to gather the following from the December 31, 2019 trial balance of
Divergent Company in connection with your audit of the company:

Cash on hand 385, 000

Petty cash fund   15, 000
BDO current account 750, 000
Unionbank current account no. 01 1, 150, 000
Unionbank current account no. 02 (40, 000)
PNB savings account 500, 000
PNB time deposit 250, 000

Cash on hand includes the following items:

a. Customer's check for P50,000 returned by bank on December 26, 2019 due to
insufficient fund but subsequently redeposited and cleared by the bank on January 08,
2020.

b. Customer's check for P45,000 dated January 02, 2020 received on December 29, 2019.

c.  Postal money orders received from customers, P27,000.

The petty cash fund consisted of the following items as of December 31, 2019.

Currency and coins 5, 300

Employees' vales 3, 400
Currency in an envelope marked "collections for charity" with names
attached 1, 500
Unreplenished petty cash vouchers 1, 000

Check drawn by Divergent Company payable to the petty cashier 3, 800

  P  15, 000

Included among the checks drawn by Divergent Company against the BDO current account
and recorded in December 2019 are the following:

a. Check written and dated December 29, 2019 and delivered to payee on January 02, 2020,
P50,000.
b. Check written on December 27, 2019 dated January 02, 2020, delivered to payee on
December 29, 2019, P76,000.

AUDIT | jipb162021
 AUDIT OF CASH
The credit balance in the Unionbank current account no. 02 represents checks drawn in
excess of the deposit balance. These checks were still outstanding at December 31, 2019.

The savings account deposit in PNB has been set aside by the board of directors for
acquisition of new equipment. This account is expected to be disbursed in the next 3
months from the balance sheet date.

Based on the above and the result of your audit, compute for the adjusted balance of
the Petty cash fund.

A. P6,800
B. P9,100
C. P11,600
D. P10,600

AUDIT | jipb162021