Results for question 1

1
An entity kept all cash in checking account. An examination of the accounting records and bank statement for the
month of June revealed the following information:
• The cash balance per book on June 30 is ₱8,500,000
• A deposit of ₱1,000,000 that was placed in the bank’s night depository on June 30 does not appear on the
bank statement
• The bank statement shows on June 30 that the bank collected note for the entity and credited the
proceeds of ₱1,000,000 to the entity’s account, net of collection charge ₱50,000
• Checks outstanding on June 30 amount to ₱300,000 including certified check ₱100,000
• The entity discovered that a check written in June for ₱200,000 in payment an account payable had been
recorded in the entity’s records as ₱20,000
• Included with the June bank statement was NSF check for ₱250,000 that the entity had received from a
customer on June 26
• The bank statement shows ₱50,000 service charge for June.

What amount should be reported as cash in bank on June 30?

Correct answer:
9,020,000

Results for question 2.

2
Upon examination of the petty cash fund of Company B on January 3, 2021, the following items were found:

Currencies ₱ 2,500.00

Coins 535.00

Certified Check of general manager dated December 15, 2020 1,800.00

Petty cash vouchers:

PCV #7152 Gasoline payments for delivery equipment 650.00

PCV #7153 Medical supplies for employees 500.00

PCV #7154 Repairs of office equipment 100.00

PCV #7155 Loans to employees 180.00

PCV #7156 Overtime Meals of Employees 350.00

Company check representing replenishment of PCF 6,000.00

Unused postage stamps 120.00

An envelope containing contributions of employees for the death of a fellow employee 3,000.00
(contents intact)

The petty cash fund was established for an amount of ₱13,000.00

What is the correct amount of petty cash fund at December 31, 2020?
Correct answer:
10,835
Results for question 3.
3
An entity had the following account balance on December 31, 2020

Cash on hand, including a customer check ₱100,000 dated January 31, 2021 ₱ 600,000

Cash in Bank of Lipa - current account 4,000,000

Cash in Bank of Lipa - savings account 2,600,000

Cash in Bank of Makati - savings account (400,000)

Cash in bank – payroll account 1,000,000

Cash in bank – restricted account for plant addition 500,000

Cash in Sinking Fund 1,000,000

Three-month time deposit 2,500,000

Traveler’s check 200,000

Manager’s check 300,000

Money order 100,000

What total amount should be reported as cash on December 31, 2020?

Correct answer:
8,700,000

Results for question 4.

4
COMPANY A, reported a balance of ₱ 45,000.00 in its Cash account at the end of the month. There were ₱
20,000.00 deposits in transit and ₱ 15,000.00 outstanding checks. The bank statement showed a balance of ₱
60,000.00 including a note with face value of ₱ 20,000.00 and a ₱ 3,500.00 service charge. How much is the interest
on the note collected by the bank?
Correct answer:
3,500

Results for question 5.

5
An entity provided the following data on December 31, 2020:

Checkbook balance ₱ 5,000,000.00

Check drawn on entity’s account, payable to supplier, dated and recorded on December 31, 1,300,000.00
2020 but not mailed until January 31, 2021

Cash in sinking fund 1,050,000.00

 Treasury bills, purchased November 1, 2020 and maturing January 31, 2021 1,550,000.00

Time deposit, purchased October 1, 2020 and maturing January 31, 2021 850,000.00

What amount should be reported as cash and cash equivalents on December 31, 2020?

Correct answer:
7,850,000