Illustration – 3: The cash account of the 2ni Corporation as of December 31, 2021 was composed of

the following:
On deposit in current account with the Banking Corporation ₽ 90, 000
Cash collection not yet deposited to the bank 35, 000
A customer's check returned by the bank for insufficient fund 15, 000
A check drawn by the Vice - President of the corporation dated January 15,2022 7, 000
A check drawn by a supplier dated December 28, 2021 for goods returned by the Corporation 6,000
A check dated May 31, 2021 drawn by 2ni Corporation against the Prudential Bank in payment of
customs duties. Since the importation did not materialize, the check was returned by the customs
broker. This check was an outstanding check in the reconciliation of the Prudential Bank Account 41, 000
Petty Cash Fund of which P 5,000 is in currency; 3,600 in for of employees I.O.U. s; and P 1,400 is
supported by approved petty cash vouchers for expenses all dated prior to closing of the books on
December 31, 2021. ____10,000
Total 204, 000
Less: Overdraft with Prudential Bank secured by a chattel mortgage on the inventories ____30,000
Balance per ledger ₽ 174,000
Per January bank statement Amount

     Balance, January 1, 2020 ₽ 4,000

     Deposits, January 9,000

     Balance, January 31, 2020 3,000

Outstanding checks:  

     December 31, 2019 (of these checks, P 1,000 had been
1,500
cleared by the bank in Jan.)

     January 31, 2020 (including December checks still

2,000
outstanding)

Deposit in transit, December 31 500

Check from Customer Zion was received on January 3,

2020 were charged back by the bank as NSF on January 5,
2020, re-deposited on January 7, 2020, and cleared. Book  
entry was made only on January 3, 2020 for the receipt of 100
the check from Zion, there was no other entry made the
Co.

Illustration – 6     The following information were gathered in relation to the examination of the Cash
account for the Corporation:

Questions: 1. Based on the foregoing information, how much was the total debits in the Cash account for
January of the Corporation?

2. How much was the total credits in the Cash account for January of the Corporation?
Illustration (Comprehensive) – 8     Able Company was recognized on January 3,2020 with a capital stock
fully paid up to ₽50,000. At December 31, 2020 of the same year, the general ledger of said company
showed the following accounts and balances:

Your examination also revealed the following information: Cash received on December 31, 2020 which
was deposited January 2, 2021 amounted to ₽441. The cost of merchandise sold was 66% of sales.
REQUIRED:
1. Compute for collections from sales.
2. Compute for payments on purchases.
3. Construct the cash account.
4. Prepare a Bank Reconciliation Statement.
Illustration 9        Ruth Company provided the following bank reconciliation on May 31:

Requirements:

1. What is the amount of

checks outstanding on
June 30?
2. What is the amount of
deposits in transit on
June 30?
3. What is the adjusted
cash in bank on June
30?
Illustration 10