The bookkeeper-cashier of Tootsie Company absconded on March 18, 2020 taking a large portion of the company's cash and accounting records including cash journals and general ledgers. As an auditor, you have been tasked with determining the potential shortage the missing employee may be charged based on the available information. Balances on March 18, 2020 show accounts receivable of P442,550, accounts payable of P207,300, and cash in bank of P98,830. Transactions between January 2 and March 18, 2020 include sales of P5,876,170, $0 in cash sales, sales allowances of P18,330, a furniture purchase of P3,000, total merchandise
The bookkeeper-cashier of Tootsie Company absconded on March 18, 2020 taking a large portion of the company's cash and accounting records including cash journals and general ledgers. As an auditor, you have been tasked with determining the potential shortage the missing employee may be charged based on the available information. Balances on March 18, 2020 show accounts receivable of P442,550, accounts payable of P207,300, and cash in bank of P98,830. Transactions between January 2 and March 18, 2020 include sales of P5,876,170, $0 in cash sales, sales allowances of P18,330, a furniture purchase of P3,000, total merchandise
The bookkeeper-cashier of Tootsie Company absconded on March 18, 2020 taking a large portion of the company's cash and accounting records including cash journals and general ledgers. As an auditor, you have been tasked with determining the potential shortage the missing employee may be charged based on the available information. Balances on March 18, 2020 show accounts receivable of P442,550, accounts payable of P207,300, and cash in bank of P98,830. Transactions between January 2 and March 18, 2020 include sales of P5,876,170, $0 in cash sales, sales allowances of P18,330, a furniture purchase of P3,000, total merchandise
The Bookkeeper – Cashier of Tootsie Company absconded on
the evening of 03/18/20 at height of the Pandemic (when the government declared lockdown and suspension of some office works). Apparently, he took with him a large portion of the company’s cash. Likewise, he had taken some accounting records including the cash journals and the general ledgers. As an auditor, you are called upon to ascertain if possible, the shortage with which the missing employee maybe charged. You obtained the following information from the available journals, ledgers and supporting documents.
Balances at close of business, 03/18/20:
Accounts receivable P442,550
Accounts payable 207,300 Cash in bank, less check outstanding 98,830
Transactions 01/02/20 to 03/18/20:
Sales from the records of receivable clerk P5,876,170
Cash sales -0- Sales allowances in customers’ accounts P18,330 Cash purchase of furniture per dealer’s invoice 3,000 Total merchandise purchases 3,615,260 Expenses paid supported by paid invoices & payrolls 1,865,830 Cash dividend declared, P50,000 (of which, P10,000 remains unpaid) 40,000