1. Shenly DiMapagpatawad Enterprises provided 3. Western Co.

Reported a total cash and cash

the following data for the purpose of preparing a equivalents of 6,325,000 on December 31, 2014, which
bank reconciliation on December 31, 2015: includes the following information:

 Two certifcates of deposit, each

Bank statement balance P2,000,000
totalling 500,000. These certificates
Outstanding checks (excluding a 250,000
have a maturity of 120 days.
certified check of P50,000)
Deposits in transit 200,000  A check that is dated January 12, 2015
NSF checks (P 50,000 had been 150,000 in the amount of 125,000.
redeposited and cleared by Dec. 30)
Proceeds of note collected by bank, net 500,000  A commercial paper of 2,100,000, due
of P 20,000 service charge in 120 days.
Erroneous credit to Shenly’s account 500,000
 Currency and coins on hand amounted
to 7,700.
What is the adjusted cash balance?
Western Co. Has agreed to maintain a cash balance of
500,000 in one of its banks at all times and it is not
2 Smith Company provided the following information available for withdrawal and to ensure future credit
on August 31, 2015: availability (this amount was included in the above
balance). How much is the correct amount of cash
Balance of cash in bank account P 1,500,000 and cash equivalents?
Balance of bank statement 1,300,000
a. 2,600,000 b. 3,100,000
Outstanding checks, August 31:
c. 5,200,000 d. 6,200,000
Number 700 5,000
761 25,000 4. The following transaction occurred in 2013:
762 30,000 Dec 1 Established an imprest fund of
10,000.
763 15,000 Dec 12 Replenished the petty cash fund
764 90,000 and increased it to 15,000. The
petty cash items included the
765 20,000 following: currency and coins,
Receipts of August 31, deposited 300,000 1,000, selling expense
September 1 vouchers, 5,000, miscellaneous
August service charge 5,000 expense vouchers, 2,000, and
supplies, 2,000
NSF check received from customer 80,000 Dec 23 Replenished the fund and
decreased it to 8,000. The petty
cash items include: currency
The cashier-bookkeeper had misappropriated P 40,000 and coins, 3,000, transportation
and an additional P 15,000 by charging sales discounts 4,000, postage 5,000, and
and crediting accounts receivable. The stub for check telephone, 3,000.
number 765 and the invoice relating thereto show that it Dec 31 The fund was not replenished. It
was for P 30,000. It was recorded incorrectly in the contained: currency and coins,
cash disbursements journal as P 20,000. This check was 2,000, transportation, 2,000,
drawn in payment of an account payable. Payment has and supplies, 4,000.
been stopped on check number 700 which was drawn in
How much is the balance of the petty cash
payment of an account payable. The payee cannot be
located. What is the adjusted cash in bank on August fund on December 31, 2013?
31, 2015? a. 4,000 b. 2,000
c. 8,000 d. 6,000
a. P 1,415,000 c. 1,420,000

b. P 1,430,000 d. 1,410,000
 For items 43, 44, and 45 refer to the following 5. Dreamtim Corporation keeps all its cash in
information: checking account. An examination of the
My Company presented the following bank company’s accounting records and bank
reconciliation for the month of March for the statement for the month’s accounting
current year: records and bank statement for the month of
June 30, 2008 revealed the following
Balance per book, March 31 5,000,000
information:
Add: Outstanding Checks 1,500,000
Bank credit recorded in error 500,000  The cash balance per book on June 30 is
2,000,000 P8,500,000
7,000,000  A deposit of P1,000,000 that was place in
Less: Deposit in Transit the bank’s night depository on June 30 does
1,300,000 not appear on the bank statement
Balance per bank statement, March 31 5,700,000  The bank statement shows on June 30, the
bank collected note for Dreamtim and
credited to company’s account: P950,000.
Data per bank statement for the month of April is as
 Checks outstanding on June 30 amount to
follows:
P300,000
April deposits (including Note collected of P900,000 for  Dreamtim discovered that checks written in
My) 4,000,000 June for P200,000 in payment of an accounts
April disbursements (excluding both NSF check, payable had been recorded in the company’s
P175,000 and service charge P25,000) 3,200,000 record as P20,000
 Included with the June bank statement was
All items that were outstanding on March 31 cleared NSF check for P250,000 that Dreamtim had
through the bank in April, including the bank credit. In received from a customer on June 26.
addition, checks amounting to P 250,000 were  The bank statement shows a P20,000 service
outstanding and deposits of P 400,000 were in transit on charges for June.
April 30.
`What amount of cast to be shown in the balance
a) What is the cash balance per ledger on sheet on June 30, 2008?
April 30?
a. 5,600,000 6. Hazel Company had the following account
c. 5,050,000 balances on December 31, 2008:
b. 5,750,000 Cash in bank – current account 5000000
d. 6,450,000 Cash in bank – payroll account 1000000
Cash on hand 500000
Cash in bank – restricted account for
b) What is the amount of cash receipts per building construction expected to be 3000000
book in April? disbursed in 2009
Treasury bills, purchased December 2000000
a. 2,200,000 15, 2008 and due March 15, 2009
c. 3,100,000
b. 4,000,000 The cash on hand includes a P200,000 check payable to
d. 3,200,000 Hazel dated January 15, 2009. What should be
reported as “cash and cash equivalents” on
December 31, 2008?
c) What is the amount of cash
disbursements per book in April?
a. 3,200,000
c. 1,250,000
b. 1,950,000
d. 1,450,000
 7. Cecile Company had the following bank Erroneous credit to Rai's account, representing proceeds of
reconciliation on June 30, 2008: loan granted to another company
Balance per bank statement, June 30 3,000,000 Proceeds of note collected by bank fo Rai, net service
Add: Deposit in Transit 400,000 charge of 20,000
The cash in bank to be shown in Rai’s December 31,
Total 3,400,000 2008 statement of financial position is
Less: Outstanding Checks 900,000 a. 1,500,000 b. 1,400,000
Balance per book, June 30 2,500,000 c. 1,800,000 d. 1,450,000

10. Account of the petty cash fund of Timex Company

The bank statement for the month of July showed the showed its composition as follows:
following: Coins and currencies 3,300
Paid vouchers:
Deposits (Including P200,000 note collected for Lazer) 9,000,000
Disbursements (Including P140,000 NSF check andTransportation
P10,000 600
service charge) Gasoline 400 7,000,000
All reconciling items on June 30 cleared through the Office Supplies 500
bank in July. The outstanding checks totaled Postage Stamps 300
P600,000 and the deposit in transit amounted to Due from employees 1,200 3,000
P1,000,000 on July 31. Manger’s check returned by bank marked NSF 1,000
a. What is the cash balance per book on July 31, Check drawn by the entity to the order
2008? of petty cash custodian 2,700
b. What is the amount of cash receipts per book What is the correct amount of petty cash fund for
in July 2008? statement presentation purposes?
c. What is the amount of cash disbursements
per book in July 2008?
11. Carefree Company’s newly hired assistant prepared
8. In preparing its bank reconciliation at the following bank reconciliation on March 31:
December 31, 2008, Uhmwell Company Book Balance 1,405,000
has made available the following data: Add: March 31 deposit 750,000
Balance per bank statement 3,800,000 Collection of note 2,500,000
Deposit in transit 520,000 Interest on note 150,000 3,400,000
Amount erroneously credited by bank to Total 4,805,000
Umwell’s account 40,000 Less: Careless Company’s deposit to our account
Bank service charge for December 5,000 1,100,000
Outstanding checks 675,000 Bank service charge 45,000 1,145,000
The adjusted cash in bank balance on December Adjusted book balance 3,660,000
31, 2008 is Bank Balance 5,630,000
a. 3,685,000 b. 3,645,000 Add: Error on check No. 175 45,000
c. 3,600,000 d. 3,605,000 Total 5,675,000
Less: Preauthorized payments for water bills 205,000
NSF check 220,000
9. Rai Company provided the following Outstanding check 1,650,000 2,075,000
data for the purpose of reconciling the Adjusted Bank Balance 3,600,000
cash balance per book with the balance Check No. 175 was made for the proper amount of
per bank statement on December 31, P249,000 in payment of account. However it was
2008: entered in the cash payments journal as P294,000.
Balance per bank statement Carefree authorized the bank to automatically pay its
2,000,000
Balance per book water bills as submitted directly to the bank.
850,000
Outstanding checks (including certified check of P100,000) What is the adjusted cash in bank on March 31?
500,000
Deposit in transit 200,000
December NSF checks (of which P50,000 had been
redeposited and cleared by December 27 150,000
12. The following data pertain to the cash transactions
and bank account of PIRAW NA Company for May of
the current year:
Cash balance per accounting record 1,719,000
Cash balance per bank statement 3,195,000
Bank service charge 10,000
Debit memo for the cost of printed checks delivered by
the bank;
the charge has not been recorded in the accounting
record 12,000
Outstanding checks 685,000
Deposit of May 30 not recorded by bank until June 1
500,000
Proceeds of a bank loan on May 30, not recorded in the
accounting
Record, net of interest of P30,000 570,000
Proceeds from a customer’s promissory note, principal
amount
P800,000 collected by the bank not taken up in the
accounting
record with interest 810,000
Check No. 1086 issued to a supplier entered in the
Accounting record as P210,000 but deducted in the
bank
Statement at an erroneous amount of 120,000
Stolen check lacking an authorized signature deducted
From Mcbride’s account by the bank in error 80,000
Customer’s check returned by the bank marked NSF,
Indicating that the customer’s balance was not
Adequate to cover the check; no entry has been made
In the accounting record to record the returned check
77,000
What is the adjusted cash in bank?
A. 3,000,000 C. 3,080,000
B. 2,910,000 D. 2,990,000
13. The accounts of Susan Company showed the
following facts on August 31, 2011.
Balance of cash in bank account 1,300,000
Balance of bank statement 1,200,000
Outstanding checks, August 31:
Number 555 10,000
761 55,000
762 40,000
763 25,000
764 65,000
765 70,000
Receipts of August 31, deposited September 1 275,000
Service charge for August 5,000
NSF check received from a customer 85,000
The cashier-bookkeeper had misappropriated P30,000
and an additional P10,000 by charging sales discounts
and crediting accounts receivable.
The stub for check number 765 and the invoice relating
thereto show that it was for P50,000.
It was recorded incorrectly in the cash disbursements of
journal as P70,000. This check was drawn in payment
of an account payable.
Payment has been stopped on check number 555 which
was drawn in payment of an account payable. The
payee cannot be located.
What is the adjusted cash in bank on August
31,2011?
A. 1,240,000 C. 1,210,000
B. 1,230,000 D. 1,200,000
14. The December 31, 2011 trial balance of Omega
Company includes the following accounts:
Cash on hand 200,000
Petty cash fund 20,000
Philippine Bank current account 5,000,000
Manila Bank current account 4,000,000
City Bank current account (100,000)
Asia Bank saving account (250,000)
Asia Bank time deposit, 90 days 2,000,000
 Cash on hand includes a customer’s check
for 35,000 returned by the bank on
December 26, 2011 due to insufficient fund
but subsequently redeposited and cleared by
the bank on January 10, 2012. It also
includes a customer’s check for 15,000
dated January 10, 2012, received December
23, 2011.
 The petty cash fund consists of currency and
coins for 5,000; IOUs from an officer for
2,000 and unreplenished PC vouchers for
12,000.
 Included among the checks drawn against
the Philippine Bank current account and
recorded in December 31, 2011 are the
following:
Check written and dated December 23, 2011
and delivered to payee on January 3, 2012;
25,000
Check written 12/26/11 dated 01/30/12,
delivered on 12/28/11; 45,000
The cash and cash equivalents on December
31, 2011 should be _____
15. The cash and cash equivalent account of
Posas Co. on December 31, 2011
includes the following:
Cash on hand 500,000
PCF (includes expense receipts of
5,000) 20,000
Cash in bank 2,000,000
 Cash Equivalent 1,000,000

 Cash on hand includes: a customer

check of 40,000 returned by bank on
12/29/11 but subsequently cleared on
01/05/12; a customer check for 60,000
dated 01/15/12, received 12/22/11; and
postal money orders from customers for
50,000.
 Cash equivalents includes: Treasury bill
maturing on 02/28/12, purchased
12/01/11, 800,000; treasury note
purchased 03/01/11, maturing 02/28/12,
200,000.
What is the cash and cash equivalents on December 31,
2011?