1,086. �*i��K�*�}���J_V_3u�.WR$���1����ז� ��rEU|եPL2)2�D��h �p��b�hTC���9,k��. Account for all cash. Pension fund 2,000, (30,000), (including P2,000 protest fee) Undeposited collections, 12/ Total P Security Bank current account no. ��K�s�zQu��ۥ�Vm�-.�}D��A�;��,΀i%+T����lS{-��K ��T�v5�w���i��y����&��h���S�`�dL�}$%���z�Y�z��e�X,���������W#��Ǐ�!#�N��P4�y����>�ɠ���~���pe.��������6�o5l�8`�jX��T��Bg`�L�߼|�?e��$2�Tu�*5Q@Vb�[�~ےX��Y� =ߺy����K0&�"f ���.Jt_' Page 1 of 21 AUDITING PROBLEMS AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. Employee's postdated check 4, Payroll account (1,830) AJE No. official receipt issued for the current year is No. (1,200). No, cash + cash equivalents is the most liquid account. December 31, 2012 4, A check representing advance payment to a supplier in the amount of P37,210, the 106,000 203, a) Customer's uncollectible check (NSF) <> Cash and cash equivalents, as adjusted b) The sales manager's liquidation report for his Baguio trip: AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. 3,584, Current account at Allied Bank A check payable to a supplier, dated December 29, 2015, in the amount of P14,750, Dec. 23 Jay Ar, sales "Why did cash and cash equivalents increase or decrease?" collections under the custody of Ms. Jessie at 8:15 a.m. on January 3, 2016. 1 You were able to gather the following from the December 31, 2005 trial balance of Peso Corporation in connection with your audit of the company: Cash on hand 372,000 Petty cash fund 10,000 BPI current account 950,000 Security Bank current account No. 144 7,000 159 7, of P1,000 and net of service charge of P500) Less: Hotel accomodation P Cash Equivalent . Petty cash fund (P4,000 in currency and expense receipts for (62,000) AJE No. Items included: Postage stamps 1, BPI current account, per trial balance (180) AJE No. 10 54 pieces *Certified by the bank in December. (1,830), f) Note collected by bank (including interest income. return 20, Deduction from accounts collections from credit sales on December 30, 2015, deposited on January 2, 2016. a. In connection with the audit of the financial statements of Rupee Company for the year ended investment and a bank loan, details of which are in additional data. Current account at Metrobank 1,800. below) Cash on hand (see no. Check no. b.  On December 31, 2015, the company received and recorded customer's postdated 60, PROBLEM NO. The bank statement on December 31, 2010 showed a balance of P638,340. e. Bank service charges of P1,830 for December were not yet recorded on the books. Current account at Allied Bank (100,000) 4 the note was sent to the bank for reconciliation). December, 2015 showed an ending balance of P91, 500. Upon comparing Foreign bank account – restricted (in equivalent pesos) 1,000,000 5. 31. Dec. 30 Cash Ms. Jessie P 2, You were told by the cashier that these were Previous. <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 936] /Contents 4 0 R/Group<>/Tabs/S>> Date Payee Description Amount Petty cash fund (personal check of sales manager) The internal control procedures surrounding cash transactions were not adequate. amounted to P250,000. 1.a) Cash disbursements: Foreign bank account (in equivalent pesos) 800, Solution: 1. representing unclaimed salaries had been removed. Cash accountability 10.  Included in the list of outstanding checks were the following: ... / accounting solutions manuals / Study Guide Volume 1 to Accompany Intermediate Accounting / 6th edition / chapter 7 / problem 1E. Redemption Fund Account PNB 500,000 c. Travelers check 100,000 d. Money order 10,000 e. Treasury bill, purchased December 1, 2006 (due … 5, e) December bank service charges Cash short/over (Receivable from in December, 2015, and were presented for payment only in January, 2016. AUDITING PROBLEMS AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. Cash short/over (balancing figure or see computation 25. Your analysis of these bank Current account at BPI (100,000) 3. 2�p����T33�\�a��J����-��xA�/���L�켞g�Rp8C}[O+���T-VQG�'���iZ���~p�f�!t�3s��rW\Ī��� �1��:��-]�H������%�Bp()E^�@I@v*J ��C(9l1�����2��В�K�M��n$C(q3��c���Qg����B�&� Computation of shortage: Balance P 3. ... A problem with cash crops is that they are labor-intensive and not economical without have enough labor to attend to them. The bank statement on December 31, 2010 showed a balance of P638,340. October, November, and December were made available to you. Computation of cash balance per books, 12/ 1 You were able to gather the following from the December 31, 2005 trial balance of Peso Corporation in connection with your audit of the company: Cash … You were able to gather the following from the December 31, 2015 trial balance of PRTC Corporation in connection with your audit of the company: Cash on hand P 372, Petty cash fund 10, BPI current account 950, Security Bank current account No.01 1,280, Balance per general ledger 293. ��@.ǒ@*a�@�<>ʪB��A���Z� �"X�}!��wc�L����]9 @V��X�o�B���-"��r���ϸR��8��F�B�����%3�� ��pQ�:��]2&&Gn1�ARzHV�� �41'W�U}�z�5��U�̫��1өf��!�3X�̾�Y���8L��stH�G��:���!��Mx��Ë��)M�Ț��a�v���u�E�vY-h�3�R�_��pro O���B)Bڻ]Y�zH$�u�x����xF�Œ� �q��U�b6H]H����TF�������n�„��0��0Z���l��"7��0�D�YCr �4 was made on December 22, 2015. You were able to gather the following from the December 31, 2015 trial balance of PRTC Cash count of the The cash receipts were recorded in the books, CASH EQUIVALENT- matures 3 months or less from the date of … but was later corrected by the bank. Bills Coins statements showed total bank credits (deposits) of P575,000 including the owners' initial Redemption Fund Account – PNB 500, c. Traveler’s check 100, d. Money order 10, e. amounting to P30,000. Check no. gathered the following information: Davao Company started operations on October 2, 2015 with the owners investing P150,000 cash. 29,610 AJE No. Dec. 29 Messengers Transportation 300 Prepare accurate cash budgets. Determine the cash shortage as of December 31, 2015. 355. endobj 1. The Alternative computation: 2. Start studying Audit - Chapter 10 - Auditing Cash and Cash Equivalents. Your audit of the company’s account with Tsunami Bank … 142 for P12,425 was enter in the cash disbursement journal at P12, 245 and 6, of P1,000 and net of service charge of P500) c. A customer's check for P15,400 was entered as P14,500 by both the depositor and the bank The company maintains its current account with the Tsunami Bank. Petty cash fund - expense receipts 6,000 Expenses ˆ��[%Z�/��G�X�E�A��g���+���-'��v��.V!�=����Y��}��c��S�1tѠ��)i��jj�8�I�i� �� .����j�t���h��� Currency and coins 2, Provide cash and cash equivalents faster than usual. Pension fund 2,000,000 Noncurrent asset Cash and cash items counted 9, Total 540, endobj 414. Total Make your own animated videos and animated presentations for free. Accounts receivable subsidiary ledgers had a total balance of P70,000 at December 31, Money market placement (due 6/30/16) 500, 10. cashier) Money order 30, 2 0 obj Advances to officers and employees 1, The Cash in Bank account of Dollar Company disclosed a balance of P203,000 as of December Adjusted balance per bank, 12/31 (Cash accounted) The company's account was charged on December 26 for a customer's uncollectible check (62,000), c) Book error in recording collection (P15,400 - P14,500) 900, d) Book errors in recording disbursements, Check no. 2015. Adjusting entries as of December 31, 2015, Compute for the following as at December 31, 2015: O.R. Dec. 31 German Corp. Rupee Company 54, Expense Vouchers Foreign bank account (in equivalent pesos) 800. but no entry was made for the loss. ��������Q�FeB��+��̋2�.KL�]a�\�zY.^_����/[���_���7K)?�ů����cbl�Ty%�>�����Qb `�R ���� Most of us are familiar with this question. Petty cash of P10,000 was included in the Cash in Bank balance. 3. representing correction of an erroneous bank credit. IOUs from employees 10, Purchases (P250,000 - P15,000) 235. payable BPI current account, as adjusted I) Bank error in recording deposit 142 (P12,425 - P12,245) - under dated December 31, 2015. The following data pertain to PRTC Corporation at December 31, 2015: Current account at Metrobank P Date Payee Drawer Amount 8, k) Stolen cash sales to be recovered from insurance co. (60,000) AJE No. b. 3. Audit Cash & Cash Equivalents Audit http://accountinginstruction.info/ k. Proceeds from cash sales of P60,000 for December 18 were stolen. What is the adjusted petty cash fund as of December 31, 20x1? 3. CASH AND CASH EQUIVALENTS. Store fixtures (P50,000 - P5,000) 45, Adjusting entries as of December 31, 2015, (b) Postdated check received (20,000). I) Bank error in recording deposit AUDIT OF CASH AND CASH EQUIVALENTS. g. Receipts for December 31 for P24,000 were deposited on January 2. 1 In connection with your audit of Caloocan Corporation for the year ended December 31, 2006, you gathered the following: 1. 500, Petty cash fund (see no. 353 35,600 Check 5. You are conducting an audit of the Swerte Company for the year ended December 31, 2015. 20 70 pieces 0.25 64 pieces Customer's check dated 1/1/16 80, c. Adjusted cash in bank Dec. 31 Rupee Company Jay Ar, sales manager 3, d. Check no. 2, c) Book error in recording collection (P15,400 - P14,500) 900 AJE No. Savings deposit in a closed bank 150, A two-month, 17% P60,000 customer's note dated October 25, discounted on November Cash on hand 3. The bank statement as of December 31 showed a balanced of P106,000. A deposit of P20,000 was recorded by the bank on December 5, but it should have been Employees' vales 1, %PDF-1.5 Replenishment check 4, Bank reconciliation: Adjustments from bank balance: Deposits in transit, outstanding checks. IOU from employees Petty cash fund, as adjusted 6, Adjusting journal entries: Post navigation. Cash account consists of the following items: Petty cash fund P 25,000 Security Bank checking account (37,500) Allied Bank … �~��(�.���?��/W Petty cash fund per total 10, Currency in envelope marked "collections for charity" Monthly bank reconciliation statements have not been prepared; however, bank statements for k) Stolen cash sales to be recovered from insurance co. 60, Bank Reconciliation - Book to Bank Method You were engaged to audit the books of Davao Company. Financial Management II (ACCOUNTING 141 ), PROBLEM NO. 1, (including P2,000 protest fee) 5 - Bank reconciliation and shortage computation. 50 80 pieces 0.50 324 pieces 156 (P3,290 - P32,900) - over Other items found inside the cash box: (4,500) The company does not have any cash equivalents. CHAPTER 3 - Audit of Cash & Cash Equivalents. Advances to officers and employees 1 Current account at Metrobank P2,000,000 Payroll account 500,000 Traveler’s check 50,000 Money order 30,000 Petty cash fund (P4,000 in currency) 4,000 Treasury bills, due 3/31/17 (purchased 12/31/16) 200,000 Total P2,784,000 PROBLEM NO. check amounting to P50,000. DAIF check of customer 15,000 Trade and other receivables c. Merchandise inventory at December 31, 2015 amounted to P30,000 but P5,000 of these Time deposit - 30 days 200, 156 for P3,290 was entered as P32,900. Checks In the process of your audit, you gathered the following:  At December 31, 2015, the bank statements and general ledger showed balances of 143 2,000 157 6, stream The investment must be short term, usually with a … accta December 10, 2015 November 30, 2018 Financial Accounting Review. Post dated check delivered 86. 14. Corporation in connection with your audit of the company: Security Bank current account No.01 1,280, Security Bank current account No.02 (40,000), a. Requirement No. 1 Unreplenished petty cash vouchers Cash Fund = are set aside for CURRENT purposes such as petty cash fund, payroll fund and dividend fund. %���� date of which is January 4, 2016, and released in December, 2015. Bus fare for two 800 First thought that comes to mind, "if the client (had a whole year to figure this out) can't even tell me the cause how am I (have a few weeks)… Outstanding checks , 12/ 4. Loan payment 80, Copyright © 2020 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Contemporary - ctto readings relation to trans nationalism and integration process, Ifrs 15 solutions retail consumer industry pwc. discounted bank note.P80,000 o this loan was paid by check in December, 2015. 2. Problem 1 The “CASH” account of Don Corporation’s ledger on December 31, 2006 showed the following: a. Rationalization: Those involved in a fraud are able to rationalize a fraudulent act as being consistent with their personal code of ethics.Some individuals possess an attitude, character, or set of ethical values that allow them to knowingly and intentionally commit a dishonest act. 123 P 3,000 No. From the records of the company, you Payroll account 500,000 4. 1 The following data were taken from your current working papers in connection with your audit of the Rizal Company’s financial statements for the year ended December 31, 2006. The last replenishment of the fund Customer’s check dated 1/1/13 80,000 Trade and other receivables Petty cash fund 142 (P12,425 - P12,245) - under Problem: You obtained the following information in connection with the audit of Bonsoir Company cash account as of December 31, 20x1: Outstanding checks, 11/30/20x1 P 16,250 Outstanding checks, 12/31/20x1 12,500 Cash disbursement journal at P12, 245 and check receipts, undeposited 79,074 from No... Cashier 's accountability amounted to P5,000 bank credit for P98,000, dated December 29, 2015 an... 6Th edition ) Edit edition... / accounting solutions manuals / Study Guide Volume to! Transit, outstanding checks c. adjusted cash in bank account – restricted ( in pesos. ), PROBLEM No adjusted cash in bank account ( in equivalent pesos 1,000,000!, usually with a … Find solutions for your homework or get textbooks Search PROBLEM:. And other Study tools pesos ) 800 or commercial paper 6th edition / Chapter 7 / PROBLEM 1E ) 5! Examples: 3-month BSP Treasury Bill, 3-month Time deposit, checking at... Bank 1,800,000 petty cash fund ( including P7,500 unreplenished voucher of which P2,400 is dated January 3, 29... ) 414 for P50,000 had an unpaid balance of P638,340 the monthly bank reconciliations current year is No net! Including P2,000 protest fee ) ( 62,000 ) AJE No from bank balance Deposits. Attend to them you were engaged to audit the books of Davao company accta December 10, Currency envelope! / 6th edition / Chapter 7 / PROBLEM 1E from cashier ) 60, PROBLEM No all should! '' ( 1,200 ) December 18 were stolen 3-month BSP Treasury Bill, 3-month money market instrument commercial... 1,830 ) AJE No Guide Volume 1 to Accompany Intermediate accounting ( 6th edition / Chapter 7 / PROBLEM.. An ending balance of P638,340 your own animated videos and animated presentations for Free you gathered following. P12, 245 and check receipts, undeposited 79,074 from or No and form they... For P24,000 were deposited on January 2 purposes such as petty cash fund ( including P2,000 protest fee ) 30,000. Money market instrument or commercial paper compilation of top three accounting PROBLEMS on cash flow statement with crops!, games, and other Study tools disclosed the following as at December 31, 2015 November,. Payroll fund and dividend fund k. Proceeds from cash sales to be recovered from insurance.!, Unreleased check 50, Post dated check delivered 86 total 10, Currency in envelope ``... Were engaged to audit the books, 12/ ( 4,500 ) undeposited,. 1,830 ) AJE No commercial paper fund ( see No as of December 31 showed a bank credit for,. As adjusted 2,914, PROBLEM No ( 1,200 ) 's December 31, 2015 showed an ending balance of,..., check No cash checks balance per books, 12/ audit of cash and cash equivalents problems with solutions 4,500 ) undeposited collections, 12/ 5 have! Study Well P500 ) 25, 2010 showed a bank charge on January 2 acquired months. Bank statement on December 31, 2015 November 30, 2018 financial accounting Review erroneous bank.! Merchandise inventory at December 31, 2015, the following: 1 procedures surrounding transactions! Were engaged to audit the books bank 1,800,000 petty cash fund ( including P7,500 unreplenished voucher of which is... Central Post Office Postage stamps 3, Dec. 29 PC Express Computer repair 1 books but! Amount of P14,750, released on January audit of cash and cash equivalents problems with solutions b flashcards, games and...

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