Cash Equivalents
- Parang or mukhang pera
- Short-term = 3 months or less
- highly-liquid (hindi risky) investments
- Readily convertible into cash
- SO NEAR (sobrang lapit na) their maturity they
present insignificant risk of changes in value
because of changes in interest rates
- NOT MEDIUM OF EXCHANGE, THUS, IT IS AN
INVESTMENT
- Highly liquid = kailangan mong tignan kung saan
ka magiinvest para malaman kung highly liquid =
naginvest ka sa mga company na hindi malulugi
within 3 months
-NO MATURITY DATE – IGNORE = DI KASALI
Commercial Paper
- similar with treasury bills but issued by
companies instead of BSP
Money Market Instrument
- invest yung money sa highly liquid na
companies
WALANG RECLASSIFICATION
- Kung binili mo siya as long term investment
hindi na siya pwedeng ilipat sa Cash Equivalents
na short tem investment lang
Redeemable Preference Share
- Substance overform
- Share = wala dapat maturity date
- From the time na ginawa ng corporation yun,
nilagyan nila ng maturity date
- In form = share
- In substance = liability = dahil may maturity date
Cash
- medium of exchange
- wala or di tataas yung value kung hindi iiinvest
Excess Cash
- investments
3 months – Cash Equivalent
More than 3 mos but not more than 12 mos – Short
term investment
More than 12 months – Long-term investment
Petty Cash Fund
- is money set aside to pay small expenses which
cannot be paid conveniently by means of check
- petty = small
- INCLUDED IN CASH ACCOUNT under CASH
FUND
Imprest System
- one employee will deposit all the receipts for
the day
- when the company has expenses, it will use
CHECK, funded by the money deposited in the
bank
- all cash collections are kept intact and deposited
in the bank
- all cash disbursements are made through checks
Imprest Fund System
- pinagsasamasama lahat ng expenses bago
irecord yung expense
Fluctuating Fund System
- everytime there is a movement in the fund,
rinerecord na agad
Petty Cash Custodian
- siya ang tagahawak ng petty cash fund
Petty Cash Memorandum Book
- maintained by the Petty Cash Custodian
- record the expenses throughout
Establishment of the Fund (1st step)
- company – gagawa ng check – magiging bills
and coins – magkakaroon na ng petty cash fund
- Debit: Petty Cash Fund = Credit: Cash in Bank
Replenishment of the Petty Cash Fund
- Request for new check to replenish the Petty
Cash Fund
- Petty cash custodian – makikipag-usap sa
accounting office or treasury – hihingi ng checke
pang replenish ng petty cash fund – dala ni petty
cash custodian yung kanyang petty cash
 memorandum book kasama yung mga receipts
and vouchers
Recording of Expenses
- YOU DO NOT RECORD IT AS IT OCCURS
- Iniintay mo na dumami sila = kung sampung
beses kang namalengke, hindi mo irerecord ng
sampung ulit, but rather, isang beses lang at
sama-sama na
- IRERECORD SIYA THE MOMENT NA
MAGREREPLENISH NG PETTY CASH FUND
Dala dala mo yung
expenses na kapalit nung
naka-debit na petty cash
fund sa establishment
Over Entry
- Debit: Petty Cash Fund = Credit: Cash Overage
*Palitan lang ng CASH IN BANK yung PETTY CASH FUND
kapag IMPREST FUND SYSTEM yung gamit
* Cash Shortage/Overage – suspense or TEMPORARY
account = iimbestigahan pa = yung naka credit ay
idedebit din later on para ma-cancel, and vice versa
*Kung hindi malaman kung ano yung reason sa Shortage
or Overage = Miscellaneous Expense/Income yung pair
ng suspense account
*Kung kasalanan ni custodian = Payable to Custodian –
Overage = Receivable to Custodian – Shortage

Credit na Cash in Bank

dahil bibigyan ka nga ng
check to replenish the
petty cash fund

End of Reporting Period

- Fluctuating Fund System – no entry = since

updated ang record dahil nga laging ineentry
everytime may movement
- Imprest Fund System – dahil hindi inabutan ng
replenishment (dahil nga sa replenishment
palang marerecord yung expenses) = therefore,
irerecord yung mga naiwan = MAY ADJUSTING
ENTRY

Hindi siya Cash in Bank

dahil hindi ka naman
humingi ng bagong check,
sadyang kailangan lang i-
update yung expenses at sumakto na hindi mo pa need
magpa-replenish ng Petty Cash Fund.

Cash Short/Over

- Yung record at physical money ay hindi tugma =

sobra or kulang

Short Entry

- Debit: Cash Shortage = Credit: Petty Cash Fund