2023.AUD.A.

ASSIGNMENT NO. 1

PROBLEM NO. 1 – AUDIT OF CASH

The cash account of RSI COMPANY shows the following activities:

Date Debit Credit Balance
Nov. 30 Balance P345,000
Dec. 2 November bank charges P 150 344,850
4 November bank credit for notes
receivable collected P 30,000 374,850
15 NSF check 3,900 370,950
20 Loan proceeds 145,500 516,450
21 December bank charges 180 516,270
31 Cash receipts book 2,121,900 2,638,170
31 Cash disbursements book 1,224,000 1,414,170

CASH BOOKS
RECEIPTS PAYMENTS
Date OR No. Amount Check No. Amount
Dec. 1 110-120 P 33,000 801 P 6,000
2 121-136 63,900 802 9,000
3 137-150 60,000 803 3,000
4 151-165 168,000 804 9,000
5 166-190 117,000 805 36,000
8 191-210 198,000 806 57,000
9 211-232 264,000 807 78,000
10 233-250 231,000 808 90,000
11 251-275 63,000 809 183,000
12 276-300 90,000 810 21,000
15 301-309 165,000 811 24,000
16 310-350 24,000 812 48,000
17 351-390 57,000 813 60,000
18 391-420 27,000 814 66,000
19 421-480 51,000 816 108,000
22 481-500 63,000 817 33,000
23 501-525 96,000 818 150,000
23 - - 819 21,000
23 - - 820 12,000
26 526-555 222,000 821 9,000
28 556-611 15,000 822 36,000
28 - - 823 39,000
29 612-630 114,000 824 87,000
29 - - 825 6,000
29 - - 826 33,000
Totals P2,121,900 P1,224,000

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BANK STATEMENT

Date Check Charges Credits

Dec. 1 792 P 7,500 P 25,500

2 802 9,000 33,000
3 - - 63,900
4 804 9,000 60,000
5 EC 243,000 243,000
8 805 36,000 285,000
9 CM 16 - 36,000
10 799 21,150 462,000
11 DM 57 3.900 231,000
12 808 90,000 63,000
15 803 3,000 -
16 809 183,000 255,000
17 DM 61 180 24,000
18 813 60,000 57,000
19 CM 20 - 145,500
22 815 18,000 -
23 816 108,000 141,000
23 811 24,000 -
23 801 6,000 -
26 814 66,000 96,000
28 818 150,000 222,000
28 DM 112 360 -
29 821 9,000 15,000
29 CM 36 - 36,000
29 820 12,000 -
Totals P1,059,090 P2,493,900

1. DMs 61 and 112 are for service charges.

2. EC is error corrected.
3. DM 57 is for an NSF check.
4. CM 20 is for loan proceeds, net of P450 interest charges for 90 days.
5. CM 16 is for the correction of an erroneous November bank charge.
6. CM 36 is for customers’ notes collected by bank in December.
7. Bank balance on December 31 is P1,776,810

Based on the preceding information, determine the following:

1. Outstanding checks at December 31

A. P459,000
B. P477,000
C. P441,000
D. P487,650

2. Deposit in transit at December 31

A. P114,000
B. P139,500
C. P132,000
D. P0

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3. Adjusted bank receipts for the month of December

A. P2,297,400
B. P2,291,400
C. P2,303,400
D. P2,321,400

4. Adjusted book disbursements for the month of December

A. P1,228,440
B. P1,246,440
C. P1,210,440
D. P1,246,620

5. Adjusted bank balance at December 31

A. P1,449,810
B. P1,674,810
C. P1,431,810
D. P1,776,810

PROBLEM NO. 2 – COMPUTATION OF CASH SHORTAGE

You have been asked by the proprietor of the STOCHASTIC CO. to verify the accountability of
the cashier-bookkeeper, who was allowed to take a vacation leave a few days ago.

A. The bank reconciliation statements prepared by the cashier-bookkeeper are presented below:
November 30, 2023
Balance per bank statement P21,500
Cash on hand 500
Total 22,000
Outstanding checks:
No. 2520 P 2,000
2521 1,400
2522 1,900 (3,300)
Erroneous bank charge 2,000
Erroneous bank credit (500)
Book balance P20,200

December 31, 2023

Balance per bank statement P 135,000
Cash on hand 6,300
Total 141,300
Outstanding checks:
No. 2674 P31,000
2675 10,300
2676 5,000 (41,300)
Erroneous bank charge 3,000
Erroneous bank credit (600)
Book balance P102,400

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B. The Cash in Bank account in the general ledger shows the following debits and credits during
December:

Cash in Bank
Dec. Dec.
1 Balance P20,200 1 Checks issued P2,000
2 Receipts 4,500 5 Checks issued 5,200
7 Receipts 5,000 14 Checks issued 31,000
12 Receipts 20,000 24 Checks issued 46,000
17 Receipts 30,000 28 Checks issued 7,600
23 Receipts 9,000
27 Receipts 70,000
31 Receipts 48,500 31 Balance 102,400
Total P198,200 Total P198,200

C. The following summarized transactions were taken from the bank statement for the month of
December 2023:

Balance, December 1, 2023 P16,500

Total deposits P173,700
The total deposits per bank statement include:
a. Collection of notes receivable P5,000
b. Correction of November erroneous bank charge 2,000
c. December 10 deposit of OBV, Inc. credited in error
to STOCHASTIC 600
Total P7,600
Total checks P65,200
The total checks per bank statement include:
a. Correction of November erroneous bank credit P 500
b. December check of DMI Co. charged in error
to STOCHASTIC 3,000
Total P3,500

D. Cash on hand per count in the morning of January 2, 2024, amounted to P6,300.

E. Before leaving his company for a one-week vacation, the proprietor had left several signed
blank checks that the cashier-bookkeeper had cashed for his personal use.

1. What is the adjusted cash balance on November 30, 2023?

A. P16,500
B. P13,200
C. P20,200
D. P14,500

2. The amount of unaccounted receipts in December is

A. P11,000
B. P13,200
C. P9,000
D. P15,100

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3. The amount of unrecorded/unsupported disbursements in December is

A. P15,100
B. P10,900
C. P7,000
D. P5,000

4. What is the total cash shortage as of December 31, 2023?

A. P26,000
B. P15,100
C. P33,000
D. P7,000

5. What is the adjusted cash balance on December 31, 2023?

A. P102,400
B. P125,000
C. P87,400
D. P111,400

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