DIT and OC

P1
Information in relation to BIR Co.’s bank reconciliation for September:
Deposit made by BIR Co. in September 2,300,000
Deposit recorded by the bank in September 1,700,000
Credit Memo – loan proceeds in September 120,000
Credit Memo – loan proceeds in August 160,000
Deposit in Transit, August 31 400,000

Requirements: The amount of deposit in transit on September 30 is:

P2
Included in the bank reconciliation for DOC Co. for November:
Checks paid by the bank in November 480,000
Check issued by DOC Co. in November 350,000
Debit memo in October 14,500
Debit memo in November 17,000
Outstanding checks October 31 185,000

Requirements: The amount of outstanding check on November 30 is:

P3
Included in the bank reconciliation for BD Co. for December:
Debits by BD Co. in December 1,400,000
Credits by the bank in December 1,700,000
Credit Memo – loan proceeds in December 200,000
Credit Memo – loan proceeds in November 100,000
Deposit in Transit, November 30 300,000
Debits by the bank in December 950,000
Credits by BD Co. in December 850,000
Debit memo in November 350,000
Debit memo in December 150,000
Outstanding checks November 30 250,000

Requirements:
1. The amount of outstanding check on November 30 is:
2. The amount of deposit in transit on September 30 is:

Proof of cash
The following information was taken from the records of DEF Co.:
February 28 March 31
Book balance
Book debits 116,000
Book credits 104,000
Bank balance 30,000 45,000
Bank debits 90,000
Bank credits
Deposits in transit 20,000 30,000
Outstanding checks 10,000 20,000
Deposit of DEF Co. erroneously credited to ABE Co. account
(Note: not yet corrected on the end of March 31) 0 5,000
Note collected by the bank 15,000 25,000
Bank service charges 2,000 4,000
Erroneously debited by the book
(Note: already corrected on the current month) 6,000

Requirements: Compute for the following by preparing proof of cash:

Accounts Receivable
P1
On December 31, 2019, subsidiary details revealed the following:
a. Trade accounts receivable (net of credit balance) – 700,000
b. Trade notes receivable (due in 14 months) – 250,000
c. Customers’ accounts reporting credit balances arising from advances – (50,000)
d. Advance payments for purchases of merchandise – 150,000
e. Cash advances to officers (due in 15 months) – 100,000
f. Claims from insurance company (due in 2 years) – 500,000
g. Subscription receivable – 300,000
h. Accrued interest receivable – 50,000

Requirements:
1. Total trade receivables
2. Trade and other receivables line item in financial statement.

P2
The following data relating to the receivable to be recognized by the company at the end of the year:
Cost of goods sold FOB shipping point, shipment date December 25, 2018, the customer received the goods
January 3, 2019 – 200,000
Cost of goods sold FOB destination, shipment date January 2, 2019, the customer received the goods January
10, 2019 – 500,000
Cost of goods sold FOB destination, freight collect (5,000 shipment cost), shipment date December 27, 2018,
the customer receive the goods January 2, 2019 – 400,000

Requirements: How much is the total receivable of the company in given the data?

P3
An entity sells inventory with a list price of 125,000 on account under credit terms of 20%, 5/10, n/30. The
entity estimates that only 70% of the cash discount will be taken and concludes that is highly probable that a
significant reversal in the cumulative amount of revenue recognized will not occur as the uncertainty is
resolved. Estimate does not coincide with actual result only 90% of the discount was actually taken.

Requirements: Using PFRS 15 how much is the adjustment to make due to the difference between the
estimate and actual result of the customers taking the discounts?