R"SA: The Review School of lccountancy

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4. CASH

LC.&CASH COUNT PROBLEMS :

L ldentify the accountabilitY:

Balance per General Ledger
a. If Petty Cash Fund, the accc,untability is the Ir1lprest
is total undeposited collections per
b. If UndepositeO Cotiections, t.he accounlability
oooxi/-records adjustecl further for any unrecorcled collections (based on additional
information of the problem) ..'L- L:!:1.. j- -^,^^t;
If there is no djrect it.1f()rmation about collections per records, accountabilitY is collections
collections'
per official Receipts, Cash receipt vouchers or other documents evidencing
for charities or any other purposes not in
c. Other collections (e.g. .eturn of expense advance, collection If the said collections for
tact and as5umed tc haye Qee_tl{le1!!€-{.cmonq currencieg-s!-[aCId
anvothe|.p*pcse.sl^:act,..nesameshallbeignoredintheCashcount.
2. Identify valid supports to the accounlabrtrlV as presented irr the problem
u.,ro,.Petty.CashFund,acceptablevalldsupportshallinclude:
- Bills and Coins, Replenishment Check, encashable Accommodated Checks (Valid cash items)
- Unreplenished petty casn Expense Vouchers (Adjusted to various expense accounts)
- Employee iOUs iAd;usted to receivables)previously accommodated checks which shall be
- PoSt dated/NSF Che:kS , Assumed to be
adjusted to receivablE.
unused r3sar,:-e -] -,, , valid support where the accountabitity
* the PettY Cash Fund
is
*'*retrJrit c,'a- erie,-'s e advances (e.g. excess from travel advance) i5 added to the
accountab ,ii .r get the total accountabitity and not added
to valid supports
b. For UndePosited Collecttons
- Bills and Coins (Post d'ated' stale and NSF
- Depositable Customer coilec-[qn checks o5-9-tlhelau$*{ale
not as valid collection, thus should not
collection checks count date atu irrcfrAed
"so6ih"
be included as valid suPPort)
- Copies of expense vouchers evidencing the use of lhe
collection to pay certaln expenses
- (valid support where accottntabitity is lJndeposited Collections' )
Unused postage stamps

FO-R BANK RECONCiLIATION PR,O_ELEY]s] .

EA-[I_K B_QO.l(

Unadlusted Baiance XX XX Unadiusted Balance

Unrecorded Bank Credits
DePosits in Transit/
(Note collection bY bank,
Undeposited Collections XX XX
Customer payments to bank, Loan proceeds)
Outstandrnc Checks (excludtng (xx) (xx) Unrecorded Bank Debits
(BSC, NSF Checks, Note/Loan
;.- c -.1 -. ---'

**;::_ payments directlY thru bank)

Bank errors
Barance rx"l-
pdriair--iiatt be the t.t!:!"11u]1'lt"
Adjusred
(a): the acllusted naUnie
---{X*:11-- CORRECT CASH BALANCE
ia') - (b): t-he net adjustment to cash shalt be the difference between the
unadjusted babhce per books an(l the adiusted balance per bank
(a) - (c): the cash shortage/overage shall be the c!ifferertce between> the two adiusted balances
SHORTAGE if: Bank < Book; OVERAGE if: Bank Book

oe f Baai-At CA 5 H P Ro BLEM S (A dl u s t e-d-Lalaree-lteilrs-d )-

E
gss. R!cSj plS Q1$Uur.s*e. 8rd
XX XX
Unadjusted balance Per bank xX XX

oepoiits in transit, beginning xx (XX)

XX XX
end
' ix).i (XX)
Outstanding checks, beginnlng (XX)
XX
end
Bank Errors (Receipt, beg is over)
' (xx) (xx)
(ReceiPt, beg is under) xx (xx) ,

(Disbursement, beg is over) xx (xx)

(Disbursement, beg is under) (xx) (xx)
(ReceiPt, end is over) (xx) (xx)
(ReceiPt, end is under) xx xx
(Disbursement, end is over) (xx) xx
xx (xx)
(Disbursement, end is under) x(x)
Bank errors in the previous month, not yet x(x)
corrected by the current month (xx)
Bank errors in the current month, corrected in
(xx)
the current month (overstatement error)** -*
Adjusted Balances xx _- _xL_,__ XX

Bes. R-qsctpts Drs_bu,rsc. "E_nd-

XX XX XX
XX
Unadlusted balance Per book
XX (xx)
Unrecorded credit, beginning XX XX
, end (XX)
(XX)
Unrecorded debit, beginning XX (XX)
, end (XX)
NSF check, beginning (XX)
XX (XX)
NSF check, end
NSF check received and rbdeposited the xx
same period (not recorded by book)*
xx
(xx) (xx)
Book Errors (Receipt, beg is over)
(Receipt, beg is under) xx (xx)
(Disbursement, beg is over) xx (xx)
(Disbursement, beg is under) (xx) (xx)
(xx) (xx)
(ReceiPt, end is over) xx
(Receipt, end is under) xx
(xx) xx
(Disbursementr end is ovcr)
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