lOMoARcPSD|8456182

Auditing: CASH AND CASH Equivalents

Bachelor of Science in Accountancy (Polytechnic University of the Philippines)

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SYNCHRONOUS 1 OCTOBER 14
Cash and Cash Equivalents
Cash
 Financial asset 6. Company’s postdated checks, unreleased
 Unrestricted checks, undelivered checks
 Initial & Subsequent measurement @face  Cash
value 7. Compensating balances
Composition  Legally Restricted: current/noncurrent
1. Cash on Hand asset
 Undeposited collections  Not legally restricted: Cash
 Working funds 8. Cash set aside for long term specific purpose
2. Cash in bank  Noncurrent asset
 Demand deposits
 SA/CA unrestricted Petty Cash Fund
Cash Equivalent Accountability: should be balance of petty cash
 3-month rule count
Notes 1. Imprest balance
1. Foreign currency 2. Collections (with or without official
 Restricted: Other Asset receipt)
 Unrestricted: Cash 3. Accommodation check
2. Cash in closed banks 4. Currency in envelope
 Receivable (written in recoverable value) Accounted for: actual cash count
3. Customers Postdated, DAIF, DAUD, NSF checks 1. Bills and coins
and IOU notes 2. Checks collected
 Receivable 3. Accommodation check
4. Postage stamps, Expense advances 4. Unreplenished vouchers
 Prepaid expenses 5. Replenishment checks
5. Bank Overdraft 6. Actual currency inside envelope
 Can be offset (if there is also another
positive account in same bank)
 Cannot be offset (current liabilities)

Bank Reconciliation
NSF checks
Previou Receipts Disbursement Current
s
NSF check prev. month, redeposited current month (xxx) xxx (xxx) xxx
NSF check current month, redeposited current month xxx xxx
NSF check current month, redeposited next month xxx (xxx)
Bank Errors
Erroneous Previous Receipts Disbursement Current
deposit previous month, corrected current month (xxx) (xxx)
deposit current month, corrected current month (xxx) (xxx)
deposit current month, corrected next month (xxx) (xxx)
deposit previous month, corrected next month (xxx) (xxx)

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Erroneous Previous Receipts Disbursement Current

Charges previous month, corrected current month xxx (xxx)
Charges current month, corrected current month (xxx) (xxx)
Charges current month, corrected next month (xxx) xxx
Charges previous month, corrected next month xxx xxx

CASES
CASE 5
Accountability Allocation of Shortage
Imprest balance 50,000 General Cash Fund
Official Receipts 198,500 Bills and Coins 24,230
Unofficial Receipt 56,000 OR 3052 (65,500)
Accommodation check 6,800 OR 3054 (25,000)
Envelope money 35,000 Deficiency in envelope (15,000)
Total 346,300 Cash shortage 81,270

Accounted for Petty Cash Fund

Bills and Coins 24,230 Imprest fund 50,000
Official check receipts 108,000 Unreplenished
Unofficial check receipt 56,000 vouchers (37,100)
Accommodation check 6,800 Accommodation check 6,800
Unreplenished Expenses 37,100 Should be balance 19,700
Replenishment 5,000 Replenishment 5,000
Cash in envelope 20,000 Accommodation check 6,800
Total 257,130 Actual balance 11,800
Shortage 89,170 PCF shortage 7,900

1. PAJE 3. 11,800
2. a. 7,900; b. 81,270 4. 330,030

CASE 7
June Receipts Disbursement July
Unadjusted balances per bank 86,295 375,840 451,695 10,440
Deposit in Transit, June 30 9000 (9,000)
Outstanding check, June 30 (26,130) (26,130)
Note e: Debit Error (5,940) 5,940
Outstanding checks, July 31 28,910 (28,910)
Deposit in Transit, July 31 15,000 15,000
.
Total 69,165 381,840 440,535 10,470
June Receipts Disbursement July
Unadjusted balances per book 70,165 381,840 327,165 124,840
Note d: Unrecorded disbursement 15,900 (15,900)
Note g: DAUD check 4,665 (4,665)
Note paid by bank 91,500 (91,500)
Bank service charge, July 1,305 1,305
Total 70,165 381,840 440,535 11,470

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Outstanding checks Deposit in transit, beginning 9,000

Outstanding check, beginning 26,130 Receipts per book 381,840
Disbursement per book 343,065 less: Receipts per bank 375,840
less: Disbursement per bank (348,285) Outstanding check, end 15,000
Outstanding check, end 28,910
Deposit in transit
1. 28,910 3. 1,000
2. 15,000 4. 11,470

CASE 10
Novembe Receipts Disbursement December
r
Unadjusted balances per bank 803,115 2,018,310 1,787,798 1,033,627
Deposit in transit 65,100 (65,100)
Outstanding check, Nov. 30 (72,400) (72,400)
Outstanding check, Dec. 31 66,320 (66,320)
Note e: Credit Error (45,000) (45,000)
Note e: Debit Error (22,000) 22,000
Deposit in transit, Dec. 31 125,050 125,050
.
Total 750,815 2,078,260 1,714,718 1,114,357
Novembe Receipts Disbursement December
r
Unadjusted balances per book 503,705 2,033,130 1,753,118 783,717
Bank Service Charge, Nov. 30 (700) (700)
Bank Service Charge, Dec. 31 300 (300)
ISF check, Nov. 30 (12,500) (12,500)
ISF check, Dec. 31 19,600 (19,600)
NR received by bank, Nov. 30 280,310 (280,310)
NR received by bank, Dec. 31 309,440 309,440
Note f: Debit Error (5,000) (5,000)
Note g: Debit Error (20,000) (20,000)
Note h: Credit Error 21,000 (20,100) 41,100
Total 750,815 2,078,260 1,714,718 1,114,357

Deposit in transit
Deposit in transit, beginning 65,100
Receipts per book 2,078,260
less: Receipts per bank (2,018,310
)
Deposit in transit, end 125,050

1. 125,050 4. 783,717
2. 783,717 5. 1,114,357
3. 1,753,780

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 lOMoARcPSD|8456182

Downloaded by Mark Lawrence Yusi (yusi.marklawrence@gmail.com)