Problem 7.

ABC Company's newly hired assistant prepared the following bank reconciliation on December
31, 2010:
Book balance P 2,810,000
Add: December 31 deposit in transit P 1,500,000
Collection of notes 5,000,000
Interest on note 300,000 6,800,000
Total 9,610,000
Less: XYZ Company's deposit to our account 2,200,000
Bank service charge 90,000 2,290,000
Adjusted book balance P 7,320,000
Bank balance P 11,260,000
Add: Error on check No, 193 9,000
Total 11,269,000
Less: Preauthorized payments for water bills P 248,000
NSF check 440,000
Outstanding check 3,219,000 3,907,000
Adjusted bank balance P 7,362,000

Check No. 193 was made for the proper amount P489,000 in payment of account. However, it was entered
in the cash payments journal as P498,000, ABC authorized the bank to automatically pay its water bill as
submitted directly to the bank.
1. Based on the above and the result of your audit, the correct cash in bank balance as of December
31, 2010, is
a. 7,320,000
b. 7,362,000
c. 7,341,000
d. 9,541,000

Problem 8. Shown below is the bank reconciliation for ABC Company for November 2010.
Balance per bank, Nov. 30,2010 P 150,000
Add: Deposits in transit 24,000
Total 174,000
Less: Outstanding checks P 28,000
Bank credit recorded in error 10,000 38,000
Cash balance per books, Nov. 30, 2010 P 136,000

The bank statement for December 2010 contains the following data:
Total deposits P 110,000
Total charges, including an NSF check of P8,000 and a service change of P400 96,000
Al outstanding checks on November 30, 2010, including the bank credit, were cleared in the bank in
December 2010, there were outstanding checks of P30,000 and deposits in transit of P38,000 on
December 31, 2010,
Based om the above and the result of your audit, answer the following:
11. How much is the cash balance per bank on December 31, 2010?
a. 154,000 c. 164,000
b. 150,000 d. 172,400
12. How much is the December receipts per books?
a. 124,000 c. 110,000
b. 96,000 d. 148,000
13. How much is the December disbursements per books?
a. 96,000 c. 180,400
b. 79,600 d. 162,000
14. How much is the cash balance per books on December 31, 20102?
a. 150,000 c. 180,400
b. 170,400 d. 162,000
15. The adjusted cash in bank balance as of December 31, 2010, is
a. 141,600 c. 172,000
b. 162,000 d. 196,000

Problem 9. The accountant for the ABC Company assembled the following data:
June, 3 July 31
Cash account balance P 15,822 P 39,745
Bank statement balance 107,082 137,817
Deposits in transit 8,201 12,880
Outstanding checks 27,718 30,112
Bank service charge 72 60
Customer's check deposited July 10, returned
by bank on July 16 marked NSF, and redeposited
immediately: no entry made on books for return or
redeposit 8,250
Collection by bank of company’s notes receivable 71,815 80,900

The bank statements and the company’s cash records show these totals:
Disbursements in July per bank statement P 218,373
 Cash receipts in July per ABC's books 236,452

Based on the application of the necessary audit procedures and appreciation of the above data, you are to
provide the answers to the following:
16. How much is the adjusted cash balance as of June 30?
a. 87,565 c. 107,082
b. (3,695) d. 15,822
17. How much is the adjusted bank receipts for July
a. 253,787 c. 245,537
b. 214,802 d. 232,881
18. How much is the adjusted book disbursement for July?
a. 220,767 c. 181,782
b. 212,517 d. 206,673
19. How much is the adjusted cash balance for July 31?
a. 137,817 c. 22,513
b. 112,335 d. 120,585
20. How much is the cash shortage as of July 31?
a. 8,250
b. 71,815
c. 196,144
d. 0