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Accounting Question Petty Cash
Accounting Question Petty Cash
Accounting Question Petty Cash
SOLUTIONS:
Cash receipts:
Owner’s investment 150,000
Proceeds from loan 98,000
Collections from customers 414,000
Total 662,000
Cash disbursements:
Purchases (250,000 – 15,000) 235,000
Store fixtures (50,000 – 5,000) 45,000
Loan payment 80,000
Expenses paid 180,000 540,000
Cash balance per books, Dec. 31 122,000
PROBLEM NO. 7 - Proof of cash
You were able to obtain the following information during your audit of Euro Company
Reconciling items:
Nov. 30 Dec. 31
Undeposited collections P 200,000 P120,000
Outstanding checks 80,000 60,000
Customer's notes collected by bank 100,000 120,000
Bank service charges 2,000 3,000 Erroneous
bank debits 10,000 20,000
Erroneous bank credits 40,000 30,000
NSF checks not redeposited 5,000 7,000 Customers
check deposited December 10,
returned by bank on December 16 marked NSF,
and redeposited immediately;
no entry made on books for return or redeposit 10,000
Unadjusted balances:
Books ? P90,000
Bank 230,000 ?
December Transactions:
Bank Books
Receipts P420,000 P270,000
Disbursements 500,000 407,000
REQUIRED: