History of Cash
least 12 months at the end of the reporting
Barter System
- exchange of products/goods.
- problem: the other party can’t be compelled to
accept the product/good offered in exchange.
Development of Discovering Cash
- not imposed, it is natural
Gold
- informal cash
- gusto ng lahat
- mineral or natural resources
- Gold Standard – measure ng wealth ng isang tao
ay nakadepende sa kung gaano karaming ginto
ang meron siya
- problem: bigat ng ginto (weight to carry when
transacting)
Gold Smith
- intervention or initiation of the government
- kung kanino idedeposit or kung sino ang
magtatago ng ginto
- will give proof of deposit and the one that will
be used in the transaction
Gold is the beginning of cash
Cash
- money
- standard medium of exchange
- representation of value
- nagiging daan or tulay para matuloy yung
exchange.
- currency and coins that are circulating and are
in legal tender
- includes money and other negotiable
instruments that are payable in money and
accepted by the bank for deposit and
immediate credit (payable ng bank sa’yo).
- negotiable instrument = tinatanggap ng mga tao
- unrestricted = hindi pwedeng pagbawalan kung
saan mo gustong gamitin yung cash
Presentation
- Current Asset
- Non-current Asset = cash is restricted for at
period.
Measurement
- Face value
- paglalagay ng value
Measurement Period
How do we measure Initially
- unang makita (ngayon)
- cash = face value
- face value = kung magkano yung nakalagay or
nakikita mo sa mismong document (bill)
Subsequently
- paglipas ng panahon
- measurement changes
- Example: depreciation
- cash = face value
Estimated Realizable Value Amount
- incase na may problema yung cash
- example: na bankcrupt yung bank kung saan ka
nag-deposit, kahit na 100k and dineposit mong
amount, hindi pwedeng 100k parin lalo na kung
hanggang 50k lang ang pwedeng ibalik
(Recoverable Amount)
Foreign Currency
- Convert = Valuation = current exchange rate
- Kung magkano yung value nung time na magco-
convert ka, yun ang irerecord mong value.
Cash Items
Cash on Hand
- Undeposited collections = bills and coins
- Customer’s check = ipinambayad ng customer
na hindi pa na-deposit sa bank
- Manager’s check = automatic na may pondo na
= approved na ng manager ng bank, kumbaga
confirmed na na may enough siyang pera na
nasa bank para makipagtransact = automatically
deducted sa kaniyang deposited amount na
nasa bank
- Cashier’s check = just like managers check iba
lang ang nag-approve = cashier ang nag-aprove
instead na manager
 - Traveler’s check = check na dala ng mga
travellers = approved na rin
- Problem in check = hindi ka sure na may
sufficient value yung check = may value lamang
kung magkano yung naka-deposit
- Bank draft = draft na sinulat ni bank = similar sa
manager’s check = pero mas mabigat and
guarantee or back-up compared sa manager’s
check = bank na mismo ang kausap mo na
nagsasabi sayong may pondo yan = check ni
bank = tatalbog (magbabounce) lang ang check
kapag nagsara na yung bank
- Money order = pwedeng galing sa other
financial institution = magbibigay ng pera kapalit
ng money order document = GCASH = hindi dala
yung physical na pera though electronic yung sa
gcash
Cash in Bank
- Checking account = gustong gamitin sa
transaction = anytime pwedeng kunin = CHECK
- Undelivered checks = ipambabayad mo dapat
siya pero hindi mo nabigay doon sa dapat na
makakatanggap = checks that are already
prepared but not yet delivered that’s why di
mababawasan yung cash = do reverse entry to
correct entry
- Post dated checks = the date of the check is
higher or later than today (kung kailan mo
ibinigay ang check) = you have to reverse
hangga’t di pa dumarating yung payment dahil
technically cash parin siya.
- Stale Check = check na nasira or napanis na =
walang ginawa sa check na natanggap niya kaya
naging stale na yung check = kailangang mapa
encash within reasonable amount of time =
walang definite period para masabi kung kailan
magiging stale ang isang check, it’s a matter of
practice = usually 6 months
- Debit: Cash in Bank – Credit: Miscellaneous
Income = If hindi na papalitan yung nawala or
stale check
- Reverse Entry = kung papalitan mo later on
- Savings deposit = ipon
- Bank overdraft = hindi legal sa Pilipinas = check
drawn more than the deposited amount =
pwedeng mangyari kung sakaling may relasyon
na rin ang bank at yung nag-issue ng check na
sobra sa deposited amount = overdraft
(inabonohan ng bank) – current liability
- Offsetting = loss in one division can be
eliminated by an equal profit in another division
= NOT ALLOWED IN OVERDRAFT EXCEPT KUNG
SAME BANK and IF THE AMOUNT IS
IMMATERIAL (maliit lang yung amount)
- The overdraft will not be presented as cash, but
it will be presented as a current liability – bank
overdraft
*Kapag gumawa ka na ng check, automatic credited na
sa cash*
* Kung naiwala ang check or naging stale, pwedeng
hindi bigyan ng replacement check yung nakawala*
*Ang check ay isang negotiable instrument, therefore, it
is good as cash*
Restriction
- No restriction = cash
- Current operation = cash fund (may
pinaglalaanan) = cash parin pero may PURPOSE
siya
- Long term investment = plant expansion fund =
long term restriction = Non current asset
- Sinking fund = nag iipon ng pambayad sa mga
matatagal na na utang
Cash Fund
- Change fund = panukli
- Tax fund = di pwedeng galawin dahil nakalaan
na as pambayad ng tax
- Payroll fund = pambayad ng salary
- Dividend fund =
Compensating Balance
- Restriction
- Papautangin ka ng 1M basta may naka deposit
ka na 200k (200k – compensating balance)
- Formal = long term investment
- Informal = part as cash = pwedeng iwithdraw
anytime = parang panakot lang at hindi serious
- Parang maintaining balance sa bank account =
INFORMAL = dahil pwede mo paring iwithdraw
yung maintaining balance = therefore, cash
parin siya
- SILENT = INFORMAL = TREAT AS CASH