Solutions: Audit of Cash (ACP103)

Problem I
Demand deposit 1,500,000
Certificate of deposit - 30 days 500,000
Petty cash fund 10,000
Unreleased checks 100,000
Posdated checks 50,000
Cash sales for 2013 recorded in 2022 (200,000)
Cash and cash equivalents, December 31, 2022 1,960,000

Problem II
Imprest Fund balance 20,000
Currecy and coins 6,000
Amount of replenishments 14,000

Problem III
1 Balance per book 170,000
NSF checks (20,000)
Proceeds of note collected by bank 150,000
Error in recording check for payment (4,500)
Adjusted balance 295,500

2 Balance per book 170,000

Deposit in transit (40,000)
Outstanding checks, net of certified checks 80,000
NSF checks (20,000)
Proceed from loan 150,000
Error in recording checks (4,500)
Proceeds from loan for other company erroneously credited 60,000
Error in recording service charge (3,000)
Balance per bank statement 392,500

Problem IV
Balance per book 600,000
Bank service charges (1,500)
Note collected by bank 225,000
Interest on note 9,000
NSF check (37,500)
Note charged to account (150,000)
Adjusted cash balance 645,000

Balance per bank 605,000

Deposit in transit 180,000
Total 785,000
Adjusted cash balance (645,000)
Outstanding checks 140,000

Problem V
Outstanding checks, May 31 200,000
Add: Checks issued during June
Book credits 800,000
Add: Book error 8,100
Total 808,100
Less: Bank service charge - May (10,000)
NSF check -May (20,000) 778,100
Total 978,100
Less: Checks acknowledge by bank
Bank credits 900,000
Less: Erroneous bank debit (6,000)
Bank service charge - June (5,000)
NSF check - June (100,000) 789,000
Outstanding checks, June 30 189,100
Problem VI
Deposit in transit, December 31, 2022 100,000
Add: Bank credits 900,000
Less: December credit memo (80,000)
Correction of November error (18,000) 802,000
Total 902,000
Less: Book debits 850,000
Less: November credit memo (60,000)
Erroneous receipt recorded (50,000)
Add: Error in recording receipts 81,000 821,000
Deposit in transit, November 30, 2022 81,000

Problem VII
1 Bank receipts for April 600,000
Deposit in transit, March 31 (100,000)
Credit memo for April (80,000)
Total 420,000
Deposit in transit, April 30 150,000
Credit memo for March 60,000
Cash receipts per books, April 30 630,000

2 Bank debits for April 500,000

Outstanding checks, March 31 (125,000)
Debit memo for April (15,000)
Total 360,000
Debit memo for March 10,000
Outstanding checks, April 30 75,000
Cash disbursement per books, April 30 445,000

Problem VIII
Nov. 30 Receipts Disb. Dec. 31
Balances 90,800 169,000 123,800 136,000
Deposit in transit
November 5,000 (5,000)
December 8,000 8,000
OC
November (32,000) (32,000)
December 7,700 (7,700)
Error - check of Sipag (1,500) 1,500
December SC not recorded 150 (150)
Adjusted balances 63,800 172,000 98,150 137,650

Balances 77,900 173,000 98,100 152,800

Service charge
November (100) (100)
December 150 (150)
Note collected
November 8,000 (8,000)
December 7,000 7,000
Error - 1159 (27,000) (27,000)
Cancellation - 1767 5,000 5,000
Adjusted balances 63,800 172,000 98,150 137,650

Unadjusted cash balance per book - 12/31 152,800

Adjusted cash balance - 11/30 63,800

Adjusted book receipts - 12/31 172,000

Adjusted bank disbursements - 12/31 98,150

Adjusted cash balance - 12/31 137,650

Problem IX
June 30 Receipts Disb. July 31
Balances 107,082 249,108 218,373 137,817
Deposit in transit:
June 8,201 (8,201)
July 12,880 12,880
Outstanding checks
June (27,718) (27,718)
July 30,112 (30,112)
NSF check redeposited (8,250) (8,250)
Adjusted balances 87,565 245,537 212,517 120,585

Balance per books 15,822 236,452 212,529 39,745

Bank service charge
June (72) (72)
July 60 (60)
Note collected by bank
June 71,815 (71,815)
July 80,900 80,900
Adjusted balances 87,565 245,537 212,517 120,585

Adjusted cash balance - June 30 87,565

Adjusted bank receipts - July 31 245,537

Adjusted book disbursements - July 31 212,517

Adjusted cash balance - July 31 120,585

Cash shortage - July 31 -