BSA1201
NOTES
CASH & CASH EQUIVALENTS
 Unreplenished voucher= EXPENSES (less in PCF)
 Employee check= RECEIVABLE from employee
(less in PCF)
 OVERDRAFT. If same bank, deduct overdraft but
if different bank, do not entertain the overdraft
(Current Liability)
 If time deposit is silent, included as cash
 If time deposit is set aside for NCA like PPE, not
included as cash
 A check of _ was drawn on end of the year
payable to PCF= REPLENISHMENT= CASH
 If sinking fund is set aside for payment within
12m.o, included as cash. If silent, not
 Postage stamps unused- not cash
 Bank statement not included
 Vouchers paid out of collection, not yet
recorded= NOT CASH
 If CHECK PAYABLE TO (ARUBA-company), it
means sa CUSTOMER= RECEIVABLES
 If CHECK PAYABLE TO VENDOR, it means a
COMPANY= ADD BACK TO CASH
PETTY CAH FUND
TO GET PCF AT YEAR END: (if 2028)
Bills and Coins
(+) Vouchers dated past the year end (Jan 2029)
(+) Employee’s check dated that year (Dec 2028)
(+) Replenishment check drawn by company
(+) Check drawn by company for petty cash custodian
(-) Unsigned pay envelope Payable to employee has
been opened and money removed
= TOTAL PETTY CASH FUND
TO GET SHORTAGE/OVERAGE:
Petty Cash Balance
Less: Total PCF
Vouchers dated that year (2028)
IOUS (Dec 2028)
Employee’s check returned marked by DAIF
Check payable payment for bills
Unused Postage stamps
Employee check dated past the year end (Jan 2029)
= SHORTAGE/OVERAGE
 A sheet of paper for bday party=NOT INCLUDED
 Unsigned pay envelope= less in PCF
 Customer’s checks in payment of account=
INCLUDED
 Money not yet deposited in bank= less in PCF
 Replenishment check drawn= INCLUDED
 UNUSED POSTAGE STAMPS= less in computing
shortage/overage
 POSTAGE STAMPS (not included in voucher)= not
included/wag pansinin
BANK RECONCILIATION
Adjusted- Book (Add:CM Less:DM)
Bank (Add:DIT Less:OC)
Book to bank- CO DD
Bank to book- DD OC
Add: Overstated Disbursement, Understated Receipts
Less: Understated Disbursement, Overstated Receipts
To know book balance (if book to bank)
(balance per book, mar 31 + cash receipts, april) – (Cash
disbursements, april)
 If bank, Withdrawal (dr.) Deposit (cr.)
 If book, Deposit (dr.) Withdrawal (cr.)
 NSF Check- Accounts Receivable
 Note collected/CM- Notes Receivable
 Book error- Accounts Payable
 If company reconciled bank balance on past
months, the check is add to the book balance
 Add collection fee/ service charge
 Certified checks less in OC
 Petty Cash NOT INCLUDED
 Deposit omitted from bank- ADD to bank
 Stolen check deducted by bank in error- ADD bank
 Creditor’s check- disbursement
1st entry- dr. CIB cr. A/P
2nd entry- dr. A/P cr. CIB
 Customer’s check
1st entry- dr. A/R cr. CIB
2nd entry- dr. CIB cr. A/R
 Adjusting entries: (just look at the book)
 CREDIT MEMO- CIB (dr.), N/R (cr.)
 SERVICE CHARGE- BSC (dr.), CIB (cr.)
If debit memo have 2 entries:
 CIB, BSC (dr.) N/R (cr.)
 BSC, A/R(NSF check), A/P(book error less) dr.
CIB (cr.)
If have interest (note collected)
 Interest income (cr.)