Assignment 01 Petty Cash Fund & Bank Reconciliation

NAME: Date: 9/8/2021

Professor: Section: BSA 2A Score:

Part I : Write your answers on the space provided.

Consider the following information:

The petty cash fund of ABC Company on December 31, 2015 is composed of the following:
Coins and currencies P14,000
Petty cash vouchers:
Gasoline payments 3,000
Supplies 1,000
Cash advances to employees 2,000
Employee’s check returned by bank marked NSF 5,000
Check drawn by the company payable to the order of Kristine
Anson, petty cash custodian, representing her salary 20,000
A sheet of paper with names of employees together with contribution
for a birthday gift of a co-employee in the amount of 8,000
Total P53,000

The petty cash ledger account has an imprest balance of P50,000.

Questions : Answers
1. What is the correct amount of petty cash on December P34,000
31, 2015?
2. How should we report the amounts present in the “Petty Petty Cash 6,000
cash vouchers” in the 2015 financial statements? Hint:
Answers should be account titles.

2.1 Gasoline payments Gasoline Expense P3,000

2.2 Supplies Supplies Expense 1,000
2.3 Cash advances to employees Advances to employees 2,000
3. How should we report the amount “Employee’s check Accounts Receivable 5,000
returned by bank marked NSF” in the financial
statements? Hint: Answer should be account title.

4. What is the amount of shortage (overage) in the petty P5,000

cash fund as of 12/31/2015?

Part II : Shade the best answer with YELLOW:

1. It is a report that is prepared for the purpose of bringing the balances of cash per records and per bank
statement into agreement.
a. Bank statement
b. Check Disbursement Voucher
c. Bank reconciliation
d. Bank deposit slip

2. These are deposits made but not yet credited by the bank to the depositor’s bank account.
a. Credit memos (CM)
b. Debit memos (DM)
c. Outstanding checks (OC)
d. Deposits in transit (DIT)

3. These are deductions made by the bank to the depositor’s bank account but not yet recorded by the depositor.
a. Credit memos (CM)
 b. Debit memos (DM)
c. Outstanding checks (OC)
d. Deposits in transit (DIT)

4. These are additions made by the bank to the depositor’s bank account but not yet recorded by the depositor.
a. Credit memos (CM)
b. Debit memos (DM)
c. Outstanding checks (OC)
d. Deposits in transit (DIT)

5. These are checks drawn and released to payees but are not yet encashed with the bank.
a. Credit memos (CM)
b. Debit memos (DM)
c. Outstanding checks (OC)
d. Deposits in transit (DIT)

6. Which of the following is added to the cash balance per books when preparing a bank reconciliation
statement?
a. Credit memo
b. Debit memo
c. Outstanding check
d. Deposit in transit

7. Which of the following is added to the cash balance per bank statement when preparing a bank reconciliation
statement?
a. Credit memo
b. Debit memo
c. Outstanding check
d. Deposit in transit

8. Which of the following represents a debit memo?

a. Collections made by the bank on behalf of the depositor.
b. Interest income earned by the deposit.
c. Proceeds from loan directly credited or added by the bank to the depositor’s account.
d. Interest expense on a loan that is directly deducted from the depositor’s account.

9. Which of the following is not a debit memo?

a. Bank service charges
b. No sufficient funds checks (NSF)
c. Automatic debits representing payments of bills by the bank on behalf of the depositor
d. Direct deposits of customers to the depositor’s account

10. As an internal control, bank reconciliation statements are usually prepared

a. on a daily basis.
b. on a monthly basis.
c. annually every year-end.
d. whenever the accountant feels like it.
Problem Solving (NRx2): Write your answers and solution below the question.

Answers:
A. Adjusted Balance Method
Maverick Co
Bank Reconciliation
As of June 30
Balance per Book P181,000
Add: Credit Memo 42,000
Total 223,000
Deduct:
Bank Service
Charge 240
NSF Checks 1,000 1,240
Adjusted Balance per book 221,760

Balance per bank 182,760

Add: Deposit in Transit 48,000
Total 230,760
Deduct: Outstanding Checks 9,000
Adjusted balance per book 221,760
B. Journal Entries

June 30 Bank Service Charge 240

Cash in Bank 240
To record bank service charge

- Accounts Receivable 1,000

Cash in Bank 1,000
To record NSF checks by bank

- Cash in Bank 42,000

Notes Receivable 42,000
To record note collected by bank