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Composition of Cash Petty Cash
Composition of Cash Petty Cash
Composition of Cash Petty Cash
Problem
1. John Macias Company provided the following data on December 31, 2021:
2. Adela Company provided the following information about the composition of its cash on December 31,
2021:
o Commercial savings account of P800,000 and a commercial checking account balance of
P900,00 are held at Metrobank.
o Money market fund account held by Banco de Oro that permits Adela to write checks in this
balance, P3,000,000.
o Travel advances of P200,000 for executive travel for the first quarter of next year (employee to
pay through salary deduction).
o Petty cash fund of P30,000.
What is the correct amount of “cash and cash equivalents” Adela Company should report in its
December 31, 2019 statement of financial position?
a. 1,700,000 c. 4,730,000
b. 3,000,000 d. 4,700,000
3. On December 31, 2020, the cash account of Absydy Company showed the following details:
4. Burr Company had the following account balances at December 31, year 2:
Cash in banks $2,250,000 Cash on hand 125,000 Cash legally restricted for additions to plant (expected
to be disbursed in year 3) 1,600,000 Cash in banks includes $600,000 of compensating balances
against short-term borrowing arrangements. The compensating balances are not legally restricted as to
withdrawal by Burr. In the current assets section of Burr’s December 31, year 2 balance sheet, total
cash should be reported at
a. $1,775,000
b. $2,250,000
c. $2,375,000
d. $3,975,000
5. Garcia Company had the following cash balance at July 31, 2021:
Undeposited coins and currency P 40,000
Unrestricted demand deposits 1,560,000
Company checks written (and deducted
from the demand deposits amount) but not
scheduled to be mailed until August 2. 370,000
Time deposits restricted for use (expected
use in 2022) 3,000,000
In exchange for a guaranteed line of credit, Garcia has agreed to maintain a minimum balance of
150,000 in its unrestricted demand deposits account. How much is the correct cash to be reported in the
statement of financial position?
a. 1,870,000 c. 4,970,000
b. 1,970,000 d. 3,000,000
6. Supreme Company had the following account balances on December 31, 2019:
What total amount should be reported as Cash and Cash Equivalents on December 31, 2019?
a. 12,702,000
b. 11,202,000
c. 8,202,000
d. 11,210,000
What total amount of cash and cash equivalents should be reported on December 31,
2022?
a. 14,513,000 c. 9,325,000
b. 14,213,000 d. 7,350,000
8. Beldad Company reported its December 31, 2020 checkbook balance at 5,000,000. Data about certain
cash items follows:
A customer check amounting to P150, 000 dated January 3, 2021 was included in the December
31, 2020 checkbook balance.
Check drawn to Beldad’s account worth P 300,000, payable to a vendor, dated and recorded in
Beldad’s books on December 31, 204 but not delivered until January 11, 2021.
Another customer check for 500,000 deposited on November 30, 2020 was included in the
checkbook balance but returned for insufficiency of fund. The check was redeposited on
December 20, 2020 and cleared two days later.
A check worth P150, 000 payable to supplier dated and recorded on December 29, 2020 was
mailed on January 13, 2021.
A petty cash fund of P55, 000 with the following summary on December 31, 2020:
9. On December 31, 2020, Kelly Company reported accounts with the following details:
On December 31, 2020, which total amount should be reported as “cash and cash equivalents”?
a. 2,760,000
b. 2,910,000
c. 2,870,000
d. 910,000
10. LB Company reported petty cash fund which comprised the following:
What is the correct amount of petty cash fund for statement presentation purposes?
a.5, 300
b.8, 300
c.8, 700
d.11, 700
11. On May 1, 2020, Cristine Company established an imprest petty cash fund for P 20,000 by writing a
check drawn against the checking account. On May 31, 2020, the fund consisted the following:
At the end of the month, the entity wrote a check to replenish the fund. What is the replenishment under
the imprest fund system?
a) 6,800
b)18,000
c) 11,800
d) 20,000
12. The cash balance per book of Jeffrey Company on December 31, 2020 was 8,000,000.
A petty cash fund of 50,000 with the following summary on December 31, 2020:
Coins and currency 5,000
Petty cash voucher 40,000
Postage Stamps 5,000
A 300,000 check payable to supplier dated and recorded December 29, 2020 was mailed on
January 8, 2021
A customer check amounting 250,000 dated January 3, 2021 was included in December 31,
2020 check book balance.
13. The petty cash fund (imprest balance of 45,000) of Kaila Company on December 31, 2020 is composed
of the following:
1. How much is the cash shortage or overage as of December 31, 2020? Indicate whether shortage
or overage.
a. Overage of P4,000 c. Shortage of P4,000 e. answer not given
b. Overage of P4,500 d. Shortage of P4,500
2. How much petty cash fund shall be shown as part of "Cash" balance as of December 31, 2020?
a. P 38,000 c. P 35,000
b. P 20,000 d. P 17,000
14. You were assigned to audit the Cash account of Jerome, Inc. as of December 31, 2020. Your cash
count of the Petty Cash Fund and undeposited collections as of that date showed the following:
The amount of Petty Cash Fund per general ledger is P15,000. Upon comparing the official receipts with
the bank validated deposit slips, you noted that P5,500 was not yet deposited to the bank.
Questions:
2. What is the amount of Petty Cash Fund to be shown on December 31, 2020 statement of
financial position?
a. P 11,200 c. P 15,000
b. P 5,700 d. P 7,100
15. A count of the petty cash fund on January 3, 2021 revealed the following composition:
Questions:
1. How much is the cash shortage or overage?
a. 350 b. 400 c. 500 d. 550
2. What is the correct amount of petty cash fund to be shown on the statement of financial
position as of December 31, 2020?
a. 9,500 b. 10,300 c. 2,800 d. 5,300