NAME: Date:

Course and Year: Score:

GEN 016 : ENHANCEMENT OF INTERMEDIATE ACCOUNTING 1

SEATWORK : PCF & BANK RECONCILIATION

Problem 1:

The petty cash fund of TONI Company (P20,000 of imprest balance) was counted on

January 3, 2024. The following items were found:

Total bills and coins P4,835

Certified check of general manager dated December 27, 2023 3,150

Petty cash vouchers not yet replenished:

Postage stamps (dated December 28, 2023) 1,420

Supplies (dated December 29, 2023) 1,750

IOU of employee (dated December 30, 2023) 1,000

Meals and transportation (dated January 2, 2024) 1,250

Company check representing replenishment of petty cash fund 6,750

Unused postage stamps 560

Currency in an envelope containing contributions of employees for the death

of a fellow employee (total collection is P5,000) 4,200

Q1. How much is the correct balance of petty cash fund as of December 31, 2023?

Q2.How much is the amount of shortage in petty cash fund as of the date of count?

To determine the correct balance of the petty cash fund as of December 31, 2023, and the amount of
shortage as of the date of the count (January 3, 2024), we need to analyze the transactions and items
found during the count.
Step 1: Calculate the Petty Cash Fund balance as of December 31, 2023:

Starting Imprest Balance: P20,000

Add:

1. Total bills and coins found: P4,835

2. Certified check of the general manager dated December 27, 2023: P3,150

Total Petty Cash as of December 31, 2023:

P20,000 + P4,835 + P3,150 = P28,985

Step 2: Calculate the total of outstanding petty cash vouchers:

1. Postage stamps (dated December 28, 2023): P1,420

2. Supplies (dated December 29, 2023): P1,750

3. JOU of an employee (dated December 30, 2023): P1,000

4. Meals and transportation (dated January 2, 2024): P1,250

Total outstanding petty cash vouchers:

P1,420 + P1,750 + P1,000 + P1,250 = P5,420

Step 3: Calculate the adjusted balance of the petty cash fund as of January 3, 2024:

Adjusted balance = Total Petty Cash (as of Dec 31, 2023) - Total outstanding vouchers

Adjusted balance = P28,985 - P5,420 = P23,565

So, the correct balance of the petty cash fund as of December 31, 2023, is P28,985.

Step 4: Calculate the amount of shortage in the petty cash fund as of January 3, 2024:

Shortage = Adjusted Balance - (Company check representing replenishment of petty cash fund + Unused
postage stamps + Currency in the envelope)
Shortage = P23,565 - (P6,750 + P560 + P4,200) = P12,055

So, the amount of shortage in the petty cash fund as of the date of the count (January 3, 2024) is
P12,055.

Problem 2:

The ABC Corporation maintained bank account at the XYZ Universal Bank. The

following information is available in the bank account for December 2023.

General ledger Bank statement

November balances P1,210,000 P1,185,000

Deposits made 1,180,000 1,320,000

Check disbursements (990,000) (1,065,000)

Bank service charge (5,000)

Notes collected by the bank 120,000

NSF check (15,000)

December balances P1,400,000 P1,540,000

[A.] Bank reconciliation in November included the following information: Bank statement

balance, November, P1,185,000; Deposit in transit, P110,000; Outstanding checks,

P85,000, and balance per ledger, November, P1,210,000.

[B.] Collection from a custom er of P105,000 in December 27, 2023 was deposited in the

bank. The bank erroneously credited ABC Corporation’s account for P150,000.

[C.] A check for P99,000 was cleared by the bank in December. It was for payment of

accounts due in December. The company’s accountant recorded the check in the cash

disbursements journal at P89,000. No correction was made yet on this transaction

in the book.

Q1. How much is the balance of deposit in transit and outstanding checks as of December
31, 2023?

Q2. How much is the balance of cash in XYZ Universal Bank as of December 31, 2023?