AUDI

TOFCASHANDCASHEQUI
VALENTS
PROBLEM 1
Int
hecour seofouraudi tofSput nik,Inc.’
scashi nbankf ort
heyearendedDecember31, 2014,
youascert
ai nedt hef ol
lowingi nfor mat i
on:
30- Nov 31- Dec
Cashperbooks 82,350 201, 425
Cashperbankst atement s 535, 410 689, 085
Undeposi t
edcol l
ections 41,005 64,400
Out standi ngchecks 138, 590 150, 560
Bankser vicecharges 3,600 3,
000
Insuf f
icientfundcheck( not ea) 41,250
Company' snot esreceivabl ecol l
ectedbybank 359, 075 404, 500
Thebankst atementandt hecompany’ scashrecordsshowt hefol
lowi ngt ot
als:
Checksanddebi tmemosperbankst atement 1, 091,
865
Cashr eceipt
spercashr ecords ?
Cashdi sbursementpercashr ecords ?
Depositsandcr edi tmemosperbankst atement 1, 245,
540
Notea:Thei nsuf fici
entfundcheckwasr edeposit
edi nthesamemont h.Noent riesweremade
tot
akeupt her eturnandr edeposi tinthebooks.

Requi
rement
s:
1.Whatistheunadjustedbookreceipti
nDecember?
a.1,227,685
b.1,182,260
c. 1,
160,660
d.823, 185
2.Whatistheunadjustedbookdisbursement
sinDecember?
a.1,059,585
b.1,063,185
c. 1,
063,785
d.1,066,185
3.Whatistheadjust
edbookbal anceonNovember30?
a.434, 825
b.437, 825
c. 441,425
d.445, 025
4.Theadjustedbankrecei
ptsinDecembershouldbe:
a.1,268,935
b.1,268,337
c. 1,
265,335
d.1,245,540
5.Theadjustedbankdisbur
sement sinDecembershoul
dbe:
a.1,103,835
b.1,105,035
c. 1,
097,835
d.1,091,865
6.Whatistheadjust
edbookbal anceonDecember31?
a.561, 075
b.602, 925
c. 605,325
d.644, 175

ANSWER:
Nov.30 Recei
pts Di
sbur
sement Dec.31
Unadj
ust
edbal
ancesperbankst
atement 535,
410 1,
245,
540 1,
091,
865 689,
085
Undeposi
tedcol
lect
ions,
Nov. 41,
005 (
41,
005)
Undeposi
tedcol
lect
ions,
Dec. 64,
400 64,
400
Out
standi
ngchecks,
Nov. (
138,
590) (
138,
590)

1
 Out
standi
ngchecks,
Dec. 150,
560 (
150,
560)
Adj
ust
edBal
ances 437,
825 1,
268,
935 1,
103,
835 602,
925

Nov.30 Recei
pts Di
sbur
sement Dec.31
Unadj
ust
edbal
ancesperbook 82,
350 1,
182,
260 1,
063,
185 201,
425
Unr
ecor
dedbankcr
edi
t:Not
eCol
.,
Nov. 359,
075 (
359,
075)
Unr
ecor
dedbankcr
edi
t:Not
eCol
.,
Dec. 404,
500 404,
500
Unr
ecor
dedbankdebi
ts:BSC,
Nov. (
3,600) (
3,600)
Unr
ecor
dedbankdebi
ts:BSC,
Dec. 3,
000 (
3,000)
NSFCheck,
ret
urnandr
edeposi
t,samemont
h* 41,
250 41,
250
Adj
ust
edBal
ances 437,
825 1,
268,
935 1,
103,
835 602,
925

PROBLEM 2
Youwereabletogathert
hefoll
owingfrom t
heDecember31,2018t r
ialbal
anceofRedhor
se,
I
nc.i
nconnecti
onwithyouraudi
tofthecompany:
Pett
ycashfund 50,
000
Cashonhand 1,
500,000
Cashinbank-Metr
obankcurrent 4,
000,000
Cashinbank-BDOAcctNo.1 3,
160,000
Cashinbank-BDOAcctNo.2 (160,
000)
Cashinbank-Cocobanksavings 4,
500,000
Ti
medeposi t
-BPI 2,
000,000

Thepet tycashf undconsist

edofthefol
lowi
ngitemsasofDecember31,2018:
Currencyandcoi ns 10,
000
Empl oyees'vales 8,
000
Currencyinanenvel opemar ked"
coll
ecti
onsforchar
it
y"wi
thnamesattached 6,
000
Unreplenishedpet t
ycashvouchers 6,
500
Checkdr awnbyRedhor se,
payabl
et ot
hepettycashi
er 20,
000
Unusedpost agestamps 1,
500
52,
000
Cashonhandr epresentsundeposit
edcol l
ectionsasofDecember31,2018andi ncl
udesthe
f
oll
owingitems:
a.Cust omer ’
s check f orP160,000 returned by bank on December26,2018 due t o
i
nsuffi
cientf undbutsubsequent l
yr edeposi
tedandcl earedbyt hebankonJanuary3,
2019.
b.Cust omer ’
scheckf orP80,000datedJanuar y2,2019,receivedonDecember29,2018.
c. Acust omercheckf orP90,000datedJune1, 2018receivedont hesamedateandyetto
bedeposi tedsincethesamehasbeenmi ssi
ng.
d.Post almoneyor der
sr ecei
vedfrom customers,P100,
000.

I
ncl
udedamongt hechecksdr awnbyRedhorseagai
nstt
heMetrobankcurrentaccountand
r
ecor
dedinDecember2018ar ethef
oll
owi
ng:
a.Checkwr it
tenonDecember29,2018dat edJanuary2,2019,del
iveredtopayeeon
December29,2018,
P160,000.
b.Checkwr i
tt
enanddat edDecember29,
2018anddel
iver
edtopayeeonJanuar y2,2019,
P200,
000.

Thecredi
tbalanceintheBDOCur r
entAccountNo.2repr
esent
schecksdrawni
nexcessoft
he
deposi
tbalance.Thesecheckswer
esti
llout
standi
ngatDecember31,2018.

The savings accountdepositi

n Coco Bankhas been setbythe boar
d ofdirect
orsf
or
acqui
sit
ionofnewcomput er
s.Thisaccounti
sexpect
edtobedisbur
sedinthenext3months
fr
om thebalancesheetdate.

Thetimedeposi
twi
thBPIwaspur
chasedonNovember1,
2018andshal
lmat
ureonNovember
1,2019.

2
Det
ermi
netheaudi
tedbalancesoft
hefol
lowi
ng:
1.Pett
ycashfund
a.30,000
b.36,000
c. 10,
000
d.24,500
2.Pett
ycashshor t
age/over
age
a.4,000shor t
b.5,500shor t
c. 2,
000over
d.500over
3.Cashonhand
a.1,070,000
b.1,170,000
c. 1,
260,000
d.1,500,000
4.Cashinbank- Met
robankcur
rent
a.4,000,000
b.4,160,000
c. 4,
200,000
d.4,360,000
5.Cashandcashequi val
entst
oberepor
tedi
nthe2018bal
ancesheet
a.8,560,000
b.8,566,000
c. 10,
560,000
d.15,060,000

PROBLEM 3
TheSuper
,Inc.hadpoori
nter
nalcont
roloveri
tscasht
ransact
ions.Dat
aper
tai
ningt
oit
scash
posi
ti
onatOctober31,
2018wereasfoll
ows:

Thecashbookshowedabal anceofP197,054.64.Thi
sincludedundeposi
tedrecei
pts.Acr
edit
ofP3,624.
00onthebankrecordsf oracust
omerdeposi tmadedi r
ect
lythroughthebanksfor
paymentofaccount
.AP1, 224.
00bankdebi talsopreparedinthebankstatementforser
vice
chargesfort
hemont hofOct ober.Thesewer enotyetr ecor
dedont hebooks.Thebank
stat
ementhadabalanceofP173,898.00

Fur
theraudi
tpr
ocedur
esr
eveal
edt
hef
oll
owi
ngoutst
andi
ngchecks:
Number 210 1,
418.40
218 1,
560.00
219 3,
039.00
223 2,
288.52
225 4,
881.60
227 1,
983.48

Cashonhandamount edtoP32, 310.24whichappear edtobet heundepositedcol

lect
ionper
books.Thecli
entsuspectsthatcashiermisappr opr
iat
edallundeposi
tedreceipt
sinexcessof
the amount pr epar
ed as undeposi t
ed r eceipt
s. The cashier tr
ied to conceal the
misappropr
iat
ionbyprepari
ngthef ol
lowingreconcil
iat
ion:

Bal
anceperbooks,Oct
ober31,2018 197,
054.
64
Add:Outst
andi
ngchecks
Number 223 2,
288.
52
225 4,
881.
60
227 1,
983.
48 9,
153.
60
Unrecor
deddebit 1,
224.
00
207,
432.
24
Less:Undeposi
tedreceipt
s 32,
310.
24
Balanceperbank,October31,
2018 175,
122.
00

3
Unr
ecordedcredit 3,
624.
00
Cor
rectcashbalance,
Oct
ober31,
2018 171,
498.
00

1.Whati
sthecorrectcashbalance?
a.175,122.00
b.179,498.24
c. 191,
037.24
d.199,454.64
2.Howmuchdidt hecashiermisappr
opr
iat
e?
a.15,171.00
b.9,153.60
c. 8,
417.40
d.2,400.00

PROBLEM 4
Youobtai
nedthefol
lowi
nginfor
mati
onont hecurr
entaccountofNiknokCorp.dur
ingyour
exami
nati
onofit
sfi
nanci
alst
atement
sfort
heyearendedDecember31,2018.

Thebankst atementonNovember30,2018showedabal anceofP918, 000.Amongt hebank

credi
tsin Novemberwascust omer’
snot eforP300, 000 coll
ected f
ort heaccountoft he
companywhi chthecompanyr ecogni
zedinDecemberamongi tsrecei
pts.Incl
udedinthebank
debit
swer ecostofcheckbooksamount ing t
o P3,600 and aP120, 000 checkwhi ch was
chargedbythebanki ner
roragainstNiknok'saccount.AlsoinNovemberyouascer t
ainedthat
there wer
e deposit
si ntransitamount i
ng to P240,000 and out st
anding checks tot
all
ing
P510,000.

Thebankst atementf ort

hemonthofDecembershowedt otalcredi
tsofP1, 248,
000andt otal
chargesofP612, 000.Thecompany’sbooksforDecembershowedt otaldebit
sofP2,206,800,
tot
alcreditsofP1, 221,
600andabalanceofP1,456,
800.Bankdebitmemosf orDecemberwer e:
No.121f orser vi
cecharges,
P4,
800andNo.122onacust omer ’
sreturnedcheckmarked“ Refer
toDrawer ”forP72,000.

OnDecember31, 2018thecompanypl acedwit

hthebankacustomer
’spr
omissor
ynotewit
ha
facevalueofP360,000forcol
lecti
on.Thecompanyt reat
edthi
snoteaspartofit
srecei
pts
althought
hebankwasabl et
ocollectonthenoteonl
yinJanuar
y2019.

AcheckforP11,
880wasr
ecor
dedi
nthecompanycashpayment
sbooksi
nDecemberas
P118,
800.

1.Howmuchistheundeposi
tedcol
lecti
onsasofDecember31,2018?
a.1,018,
800
b.538,800
c. 658,
800
d.418,800
2.Howmuchistheoutst
andi
ngchecksasofDecember31, 2018?
a.575,880
b.1,192,
800
c. 1,
085,
880
d.1,089,
480
3.Howmuchistheadj
ustedcashbalanceasofNovember30,2018?
a.648,000
b.768,000
c. 528,
000
d.471,600
4.Howmuchistheadj
ustedcashbalanceasofDecember31,2018?
a.1,876,
920
b.586,920
c. 660,
000
d.1,126,
920

4
 PROBLEM 5
Fol
lowi
ngtheinfor
mati
onper
tai
nst
otheCashi
nBankaccountofDr
awi
ngCompanyf
ort
he
monthofApr
il
,2018.

a.Balancesperbankst atementMar ch31, P21,560andApr i

l30, P23,040.
b.BalancesofCashi nbankaccounti ncompany’ sbooks:Mar ch31, 16,
545,andApr il30,
P22,680.
c. Totalrecei ptsperbookswer eP222, 190ofwhi ch1,210waspai dincasht oacreditoron
April16.
d.Tot alchar gesi nthebankst atementdur ingApr i
lwereP218, 970.
e. Undeposi t
edr eceiptswer e:Mar ch31, P9,060andApr i
lwer eP218,970.
f. Outstandi ngcheckswer e:Mar ch31,P2, 675andApr i
l30,P1, 930,ofwhi chacheckf or
P500wascer tif
iedbyt hebankonApr i
l22.
g.NSFchecksr eturned,r
ecor dedasr eductionsofcashr eceiptswer e:
1.Ret ur nedbyBanki nApr il,recor dedal soinApr i
l,P1,040
2.Ret ur nedbyBanki nApr ilbutr ecordedi nMayP860
h.Collect i
onsbyBanknotr ecor dedbycompanywer eP12, 150i nMar ch,andP11,640i n
April.
i
. Bankser vicechar gesnotent eredi ncompany’ sbookswer e:Mar ch31,P750,andApr i
l
30P420.
j. Acheckf orP950ofNar utoCompanywaschar gedt oDr awingCompanyi nerror.
k. Acheckdr awnf orP840waser roneousl yent eredint hebooksasP480.
Pr
epareaf our -col umnr econcili
ationofr eceipts,disbursement sandbankandbookbal ances
f
orMar chandApr il2018.
31-
Mar Recei
pts Di
sbur
sement
s 30-
Apr
Bal
anceperbank 21,
560.
00 220,
450.
00 218,
970.
00 23,
040.
00
DI
T 9,
060.
00 (
9,060.
00)
10,
120.
00 10,
120.
00
OC (
2,675.
00) (
2,675.
00)
1,
430.
00 (
1,430.
00)
Er
ror (
950.
00) 950.
00
27,
945.
00 221,
510.
00 216,
775.
00 32,
680.
00
31-
Mar Recei
pts Di
sbur
sement
s 30-
Apr
Bal
anceperbook 16,
545.
00 220,
980.
00 214,
845.
00 22,
680.
00
CM 12,
150.
00 (
12,
150.
00)
11,
640.
00 11,
640.
00
DM
NSF 1,
040.
00 1,
040.
00
860.
00 (
860.
00)
BSC (
750.
00) (
750.
00)
420.
00 (
420.
00)
Er
ror 360.
00 (
360.
00)
27,
945.
00 221,
510.
00 216,
775.
00 32,
680.
00
*
220,
980(
222,
190-
1,210)