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Chapters 1-3: Cash and Cash Equivalents, Bank Reconciliation and Proof of Cash
Chapters 1-3: Cash and Cash Equivalents, Bank Reconciliation and Proof of Cash
An entity reported cash account balance per ledger of P10,800,000 on December 31, 2019 which
included the following:
Check of 150,000 in payment of accounts payable dated and recorded on December 31,
2019 but mailed to creditor on January 7, 2020.
Check of 300,000 dated January 31, 2020 in payment of accounts payable was recorded
and mailed on January 3, 2020.
The cash receipts journal was held open until January 15, 2019, during which time an
amount of 400,000 was collected and recorded on December 31, 2019.
Julie Corporation is using an Imprest System in dealing with Petty Cash Funds. The end of the reporting
period is at the end of August. The transactions are as follows:
July 31 – Replenished the fund. The petty cash vouchers include the following:
5. If Julie Corporation used fluctuating fund system, an entry on August 31 would include a
a. Debit to PCF 5,000
b. Credit to PCF 5,000
c. Debit to Transportation expense 1,000
d. Debit to Cash short/over 1,000
Bank Book
Checks recorded 3,637,000 3,540,000
Deposits recorded 2,585,000 2,700,000
Collection by bank 55,000
NSF check returned 15,000
Additional information:
On December 31, 2019, the bank statement on MNO Company had an ending balance of P747,000. The
following data were assembled in the course of reconciling the bank balance:
The bank erroneously credited MNO Company for P4,200 on December 23.
During the month, the bank charged back NSF checks amounting to P4,600 of which P1,600 had been
redeposited by December 27.
Collection for December 31 totaling P20,600 was deposited on January 2, 2020.
Checks outstanding on December 31 amounted to P60,400.
Note collected by the bank for MNO Company was P16,000 and the corresponding bank charge was
P1,000.
9. What is the unadjusted cash in bank per ledger on December 31, 2019?
a. 703,000
b. 711,400
c. 691,000
d. 699,000
10. What is the adjusted cash per bank on December 31, 2019?
a. 703,000
b. 711,400
c. 691,000
d. 699,000