PROOF OF CASH

PROBLEM 8-13 Basics of Proof of Cash

Data regarding the cash in bank for the current year of Basic Company follow:
Jan. 31 Feb. 28
Cash per ledger 250,000 290,000
Cash receipts for February 300,000
Unadjusted bank statement 237,500 276,800
Bank disbursements 255,700
Credit Memo for note collected 30,000 35,000
Bank service charge 7,500 4,200
Deposit in transit 50,000 60,000
Outstanding checks 15,000 16,000
Required: Compute for the adjusted balance of the following:
1. Cash in bank, January 31
2. Cash receipts
3. Cash disbursements
4. Cash in bank, February 28

PROBLEM 8-14 Basics of Proof of Cash

Data regarding the cash in bank for the current year of Launch Attack Company follow:
Jan. 31 Feb. 28
Cash per ledger 250,000 290,000
Cash receipts for February 300,000
Unadjusted bank statement 248,100 282,400
Bank disbursements 269,600
Overstatement of customer’s checks per books 4,000 3,000
receipt?)
Overstatement of company’s checks per books 300 900
Erroneous bank credit 5,000 4,000
Erroneous bank charge 3,200 9,500
Required: Compute for the adjusted balance of the following:
1. Cash in bank, January 31
2. Cash receipts
3. Cash disbursements
4. Cash in bank, February 28

PROBLEM 8-15 Basics of Proof of Cash

Your client, Aira Marie Zhon Company, presented you the following data:
Jan. 31 Feb. 28
Cash per ledger 200,000 270,000
Cash receipts for February 150,000
Bank statement balance 203,300 273,200
Total credits per bank stat 157,700
ement in February
Credit Memo for note collected 10,000 15,000
NSF check 2,000 3,000

Understatement of salaries expense per book

(corrected the following month) 1,500
600
Deposit in transit 9,000 ?
Outstanding checks 3,000 ?
Erroneous bank credit 6,000 4,000
Erroneous bank charge 3,200 1,400
Questions:
Based on the above data, compute for the following:
1. Deposit in transit, February 28
a. ₱13,500 c. ₱9,500
b. ₱16,300 d. ₱19,500
2. Outstanding checks, February 28
a. ₱700 c. ₱5,700
b. ₱2,700 d. ₱1,300
3. Unadjusted bank disbursements in February
a. ₱81,500 c. ₱80,100
b. ₱87,800 d. ₱81,000
4. Adjusted cash in bank balance on January 31
a. ₱206,500 c. ₱203,300
b. ₱208,000 d. ₱208,500
5. Adjusted Cash receipts in February
a. ₱155,000 c. ₱162,200
b. ₱140,000 d. ₱158,200
6. Adjusted Cash disbursements in February
a. ₱81,000 c. ₱79,500
b. ₱80,100 d. ₱81,500
7. Adjusted cash in bank balance on February 28
a. ₱282,000 c. ₱284,000
b. ₱281,400 d. ₱280,000

PROBLEM 8-16 Proof of Cash

Reconciliation of Jazz Company’s bank account at May 31 of the current year is:
Balance per bank statement ₱2,600,000
Deposits outstanding 300,000
Bank service charge 10,000
Erroneous bank charge 40,000
Outstanding checks (100,000)
Erroneous bank credit (60,000)
CM for collection of note (600,000)
Balance per book ₱2,190,000
June data are as follows:
Bank Book
Checks recorded 2,200,000 2,500,000
Correction of erroneous bank credit in May 60,000 -
Deposits recorded 1,600,000 1,800,000
Correction of erroneous bank charge 40,000 -
Service charges recorded 50,000 -
CM for collection by bank 550,000 600,000
NSF checks returned with June 30 statement (will be
redeposited) 100,000 -
Questions:
Based on the above data and the result of your audit, compute for the following:
1. How much is the total outstanding checks on June 30?
a. ₱400,000 c. ₱190,000
b. ₱510,000 d. ₱340,000
2. How much is the total deposit in transit on June 30?
a. ₱510,000 c. ₱100,000
b. ₱500,000 d. ₱90,000
3. How much is the total adjusted cash receipts in June?
a. ₱2,350,000 c. ₱2,190,000
b. ₱2,400,000 d. ₱2,030,000
4. How much is the total adjusted cash disbursements in June?
a. ₱2,650,000 c. ₱2,500,000
b. ₱2,410,000 d. ₱2,350,000
5. How much is the total adjusted cash balance as of June 30?
a. ₱2,480,000 c. 2₱,370,000
b. ₱2,280,000 d. ₱2,490,000