You are on page 1of 1

Seatwork Accounting for Cash 1.

Proceeds of a bank loan credited on June 16 at discounted amount of P88,000 at 12% for one
Problem 1: The following data were given to you for the preparation of the three date Proof of Cash of year.
Naku Po Corporation: 2. Proceeds from sale of shares of stock amounting to P10,000 (cost P8,000) transmitted directly by
November 30 December 31 January 12 stock broker to the bank and credited on June 29.
Naku Po Corporation
2016 2016 2017 3. Check of P500 received from a salesman, who liquidated his advance, and deposited on June 2
Bank Statement Balance 27,324.08 20,383.89 29,514.84 was subsequently charged (under Deposit column) by the bank on June 28 due to no
Book Balance 21,214.95 16,689.86 arrangements.
Outstanding Checks 7,324.13 8,231.12 3,172.50 d. Checks outstanding, per records kept by the accountant, as of May 31, and June 30, were as follows:
Deposit in Transit 2,200.00 3,750.00 1,625.00
Dec. 1 31 Jan. 1 12 May 31 June 30
2016 2017 No. No.
Book Receipts 88,546.50 21,473.26 842 2,500 915 5,500
Bank Credits 86,324.00 24,372.10 843 4,200 916 2,500
Book Disbursement 93,071.59 9,980.03 844 2,000 917 3,000
Bank Charges 93,264.19 15,241.15 845 500 918 1,000

The company obtained the bank statement for November and December 2016, and reconciled the e. Included among charges in June 2017 bank statement were the following:
balances. You also obtained directly the bank statement for January 12, 2017 and obtained necessary 1. Check of DBEAST Company for P1,600, which was charged in error by bank.
confirmations. You have found that there are no errors in addition or subtraction in the clients books. The 2. Check No. 830 for P1,000, dated May 27, 2017 and paid to Cash. This was ascertained to have
following information also was obtained: been properly recorded in May 2017
1. Bank service charges of P11.50 were charged on the November 30, 2016 statement and recorded in 3. Check No. 844 for P200, dated May 31, 2017, and issued to trade creditor. It was verified that this
the cash disbursement book on December 5, 2016; statement bank service charge December P13.25 disbursement was recorded erroneously in the books at P2,000.
and recorded in the cash disbursements on January 6, 2017. 4. Check No. 870 for P4,200, dated June 10, 2017. This was issued to replace Check No. 843, which
2. Check No. 3132289 for P22.48 cleared the bank in December as P122.48. This was found in proving was accidentally destroyed by the payee, a trade creditor. While a stop payment order was issued
the bank statement. The bank made the correction on January 8, 2017. to the bank on June 5, 2017, when advice was received from payee no entry has been made in
3. A note of P1,000, sent to the bank for collection on November 15, 2016 was collected and credited to the books to record cancellation of No. 843.
the account on November 28, 2016, net of collection fee of P3.50. The note was recorded in the cash f. Footing of June 2017 cash receipts of P202,500 and cash disbursement of P235,200 should be
receipts on December 21, 2016, at which date the collection fee was entered as disbursement. P203,500 and 234,200 respectively.
4. The client records returned checks in red in the cash receipts books. The following checks were g. It was found from the confirmation replies received that the balance of P1,000 due from customer as
returned by the bank: of June 30, 2017 was paid on June 18,2017. However, this could not be traced to the cash receipts
Customer Amount Date Returned Date Recorded Date Redeposited book and deposit made in June 2017.
Garcia, Pining P327.50 Dec. 6, 2016 ---* Dec. 8, 2016
Cool, Gina 673.84 Dec. 27, 2016 ---* Jan. 12, 2017 Problem 3: On December 31, 2009, the cash count of Pateros Company has a debit balance of
---* no entries for this item were made in the receipts or the disbursement records P2,375,000. An analysis of the cash account shows the following details:
5. Two payroll checks for employees vacation totaling P215.75 were drawn on January 3, 2017, and Cash in bank ABC Bank checking account 250,000
cleared the bank on January 8, 2017. These two checks were not entered in the clients records Cash in bank XYZ Bank (overdraft) (25,000)
because semimonthly payroll summaries (from the payroll records) are entered in the disbursement Cash in bank ABC Bank (payroll fund) 75,000
only on the fifteenth and thirtieth or thirty-first of each month. Cash in bank ABC Bank (saving deposit) 50,000
Cash in bank ABC Bank (money market instrument, 90 days) 1,000,000
Problem 2: In connection with the preparation of proof of cash of DBEST Company as of June 30, 2017, Cash in foreign bank (restricted) 500,000
the following among others, were obtained pertaining to the verification of Cash: Undeposited collections 30,000
a. Entries in the books and bank statement were summarized as follows: Undeposited NSF check received from customer, dated December 1, 2009 7,500
Books Bank
Undeposited check from customer, dated January 15, 2010 12,500
Balance, May 31 69,200 75,000
IOUs from officers 15,000
Add Cash Receipts 202,500 297,400
Listed shares held as trading investment 60,000
Total 271,700 372,400
Less Cash Disbursement 235,200 228,000 Sinking fund cash 225,000
Balance 36,500 144,400 Sinking Fund Securities acquired on 12/01/09, with a maturity date on 2/1/10 175,000
b. Undeposited collections, per records kept by the accountant, on May 31, and June 30, amounted to Compute for the cash and cash equivalent that should be shown in the statement of financial position.
P3,400 and P6,000, respectively.
c. Deposit column of the bank statement showed the following which could not be traced to the books: