CASH AND

CASH EQUIVALENTS
CASH BALANCE
Petty Cash Fund
1. Mr. Tomas Y. Lang, a businessman friend, has requested your help in explaining and solving
the following problems that confront his company, the T.Y. Lang Corp. A cash count on
January 2, 1976 showed the following items in the petty cash box:
Currency and coins counted
P 12.56
Envelope containing contributions to employees party
90.00
Petty cash vouchers approved
14.50
Employees IOUs
180.00
Company check for fund replenishment
92.00
The petty cash fund was established for an amount of P300.00.
What is the correct amount of petty cash for the balance sheet as of the end of the year
December 31, 1975? (E)
A. P300
C. P104.56
B. P12.56
D. Some other answer.
RPCPA 1076
1. Account of the petty cash fund of XYZ Company showed its composition as follows:
Coins and currency
3,300
Paid vouchers:
Transportation
600
Gasoline
400
Office supplies
500
Postage stamps
300
Due from employees
1,200
3,000
Managers check returned by the bank marked NSF
1,000
Check drawn by company to the order of petty cash custodian
2,700
What is the amount of the petty cash fund for balance sheet purposes? (E)
A. 10,000
C. 6,000
B. 7,000
D. 9,000
RPCPA

60. An account of the petty cash fund showed its composition as follows:
Coins and currency
Paid vouchers
Transportation
600
Gasoline
400
Office supplies
500
Postage stamps
300
Due from employees
1,200
Employees check returned by bank marked DAIF
Check drawn by the company to the order of the petty cash custodian
4,000

What is the correct amount of petty cash fund?

A. 6,000
C. 9,000
B. 7.000
D. 10,000

2,000

3,000
1,000

1. The ledger account for petty cash of MARTY Co. as of December 31, 1990 showed a balance
of P3,000. However, the following items were found in the petty cash box:
Currency and coins
P1,019.20
Vale slips from employees
535.00
An envelope containing cash collections to be donated to
earthquake victims by employees wit list of names
attached
115.00
Petty cash vouchers paid:
Telegram charges
P 58.00
Office supplies
134.00
Transportation
124.50
Postage stamps
74.00
390.50
Check of an employee post-dated Jan. 5, 1991
200.00
Employees check marked NSF Jan. 5, 1991
350.00
Check drawn by MARTY Co. to petty cash
500.00
TOTAL
P3,019.70
What is the correct amount of petty cash fund that should be shown on the balance sheet as of
December 31, 1990? (E)
A. P1,404.20
C. P1,634.20
B. P1,519.20
D. P1,524.50
RPCPA 1091

14. The petty cash fund of Becky Company on December 31, 2008 is composed of the following:
Coins and currencies
16,000
Petty cash vouchers:
Postage stamps
2,000
Supplies
3,000
Cash advances to employees
4,000
Employees check returned by bank marked NSF
5,000
Check drawn by the company payable to the order of
Ms. Bobadilla, petty cash custodian, representing her salary
15,000
A sheet of paper with names of employees together with contribution
for a birthday gift of a co-employee in the amount of
5,000
Total
50,000
The petty cash ledger account has an imprest balance of P50,000. What is the correct
amount of petty cash on December 31, 2008?
A. 16,000
C. 36,000
B. 31,000
D. 50,000
Siy
Cash in Banks
Composition
89. Kennison Company has cash in bank of $10,000, restricted cash in a separate account of
$3,000, and a bank overdraft in an account at another bank of $1,000. Kennison should report
cash of (E)
a. $9,000.
c. $12,000.
b. $10,000.
d. $13,000.
KW&W 1e
91. Lawrence Company has cash in bank of $15,000, restricted cash in a separate account of
$4,000, and a bank overdraft in an account at another bank of $2,000. Lawrence should report
cash of (E)
a. $13,000.
c. $18,000.
b. $15,000.
d. $19,000.
KW&W 1e
Cutoffs
2. The Cash account of Island Corp. has a balance of P96,000 on December 31, 2012. Your
review of the cash transactions recorded in December revealed the following:
Cash receipts included customers checks for P4,000 dated January 10, 2013.
Cash disbursements included:
Check of P10,000 payable to Ace Company. The check, dated December 23, was
delivered to Ace on December 24, but had not been paid by the bank as of December 31.

Check of P7,000 payable to King Co. The check was dated December 29 but still
undelivered as of December 31.
What is the correct cash balance at December 31, 2012? (E)
A. P75,000
C. P97,000
B. P89,000
D. P99,000
R & E 2012

Cash on Hand & in Banks

Cash on Hand & in Bank
Cash on hand, cash in bank
3. Consider the following: Cash in Bank checking account of $13,500, Cash on hand of $500,
Post-dated checks received totaling $3,500, and Certificates of deposit totaling $124,000. How
much should be reported as cash in the statement of financial position? (E)
a. $ 13,500.
c. $ 17,500.
b. $ 14,000.
d. $131,500.
KW&W 1e

4. Diamond Company had the following account balances at December 31, 2012:
Cash in banks
P2,250,000
Cash on hand
125,000
Cash legally restricted for additions to plant
(expected to be disbursed in 2013)
1,600,000
Cash in banks include P600,000 of compensating balances against short-term borrowing
arrangements. The compensating balances are not legally restricted as to withdrawal by
Diamond.
In the current assets section of Diamonds December 31, 2012 statement of financial position,
total cash should be reported at (E)
A. P1,775,000
C. P2,375,000
B. P2,250,000
D. P3,975,000
R & E 2012

Comprehensive
6. The following pertains to Megatron, Inc. on December 31 of the current year: Checking
account balance P925,000; an overdraft in special checking account at same bank as normal
checking account of P17,000; certificate of deposit P400,000; cash held in a bond sinking fund
P200,000; postdated check from customer P11,000; certified check from customer P9,800;
NSF check received from customer P15,000; cash advance to subsidiary of P300,000;
postage stamps on hand P620; utility deposit paid to electric company P8,000; currency and
coins in a petty cash fund (the company has not replenished the fund to the imprest amount of
P5,000) P800. The correct amount that should be reported as cash is (M1)
A. P908,800
C. P1,318,600
B. P918,600
D. P1,322,800
Cabarles

1. The balance sheet of Maligaya Co. as of December 31, 1981 showed the cash account of
P87,300. It was found to have included the following items:
Postal money orders from customers P2,400
Notes receivable in the possession of a collecting agency, P3,200
Receipts for expenses advanced for the account of certain suppliers, P1,600
Customers post-dated checks, P1,500
Customers checks returned by the bank marked No sufficient funds, P1,800
Currencies and coins on hand, P600
Travelers check, P500
Checks in payment of accounts, ready for issuance and recorded on December 31, 1981
but still in the safe of the cashier awaiting instructions for delivery to payees, P6,000
Petty cash fund, (P160 in currency and expense receipts for P840), P1,000
The correct cash account balance for the balance sheet is (M)
A. P82,500
D. P72,360
B. P76,500
E. P78,360
C. P81,660
RPCPA 0582
4. Mariela Company provided following information on December 31,2012:
Cash in bank per book
7,300,000
Cash in bank per bank statement
7,000,000
Deposit in transit
1,200,000
Outstanding checks (including certified check of P200,000)
1,500,000
Deposit in other bank closed by BSP
1,500,000
Currency and coins on hand
600,000
Petty cash fund
50,000
DAIF checks of customers returned by bank
500,000
Error in recording a check in the book. The correct amount as paid
by the bank is PI00,000 instead of P200,000 as recorded in the book
100,000
What is the total cash to be reported as current asset on December 31, 2012?
A. 6,900,000
C. 7,300,000
B. 7,000,000
D. 7,550,000
CPAR 1012
5. The Ruby Companys ledger showed a balance in its cash account at December 31, 2012 of
P682,250, which was determined to consist of the following:
Petty cash fund
P 3,600
Checking account in Metrobank (check of P6,000 is still outstanding)
336,750
Notes receivable in the possession of a collecting agency
25,000
Undeposited receipts, including a postdated check for P10,500 and

Travelers check for P10,000

178,000
Bond sinking fund cash
127,500
IOUs signed by employees
4,950
Paid vouchers, not yet recorded
6,450
Total
P682,250
At what amount should Cash on hand and in bank be reported on Ruby Companys
statement of financial position? (M)
A. P501,850
C. P629,350
B. P507,850
D. P662,250
R & E 2012

3. Integrity Company had the following account balances at December 31, 2009:
Cash in bank
5,000,000
Cash on hand
200,000
Time deposits
500,000
Cash as bond sinking fund due June 30, 2010
1,000,000
Cash legally restricted for additions to plant
(expected to be disbursed in 2010)
2,000,000
Cash as preferred stock redemption fund
(redemption date October 31, 2010)
2,500,000
Cash in bank includes P1,000,000 of compensating balance against short-term borrowing
arrangement. The compensating balance is not legally restricted as to withdrawal by Integrity.
In the current assets section of the December 31, 2009 balance sheet, total cash should be
reported at
A. 6,200,000
C. 8,700,000
B. 6,700,000
D. 11,200,000
Siy

Cash equivalent
17. SURE ILL PASS CORPORATION held the following investments at year-end and you are to
compute the cash and cash equivalents:
2,000 shares of Holdings, common stock purchased at P45 per share with a current
market value of P49.50 per share.
P10,000 worth of commercial paper from BA Finance paying an interest rate of 8%. The
commercial paper matures in 45 days.
P50,000 in Treasury bills due in 3 months.
50,000 shares of Republic Pair Common Stock purchased about a year-and-a-half ago at
P33.75 per share. Year-end market value is P31,25 per share.
10,000 shares of TAIPAN, a small corporation owned by the brother of the president of
SURE ILL PASS. The shares were purchased several years back at P10. Current value
can not be determined. (E)

A. None.
B. P150,000

C. P60,000
D. P50,000
RPCPA 0595

Cash in bank & cash equivalent

6. Logistics Company had the following items listed in its trial balance at 12/31/11:
Balance in checking account, Bank of the East
$442,000
Treasury bills purchased on 11/1/11, mature of 1/30/12
20,000
Loan payable, long-term, Bank of the East
300,000
Included in the checking account balance is $50,000 of restricted cash that Bank of the East
requires as a compensating balance for the $300,000 note. What amount will Logistics include
in its year-end balance sheet as cash and cash equivalents? (D)
A. $412,000.
C. $392,000.
B. $462,000.
D. $442,000.
S&S 6e
7. Cook Co. had the following balances at December 31, 1992:
Cash in checking account
$350,000
Cash in money-market account
250,000
U.S. Treasury bill, purchased 12/1/92, maturing 2/28/93
800,000
U.S. Treasury bill, purchased 3/1/92, maturing 2/28/93
500,000
Cooks policy is to treat as cash equivalent all highly-liquid investments with a maturity of three
months or less when purchased. What amount should Cook report as cash and cash
equivalents in its December 31, 1992, balance sheet? (E)
A. $600,000
C. $1,400,000
B. $1,150,000
D. $1,900,000
AICPA 0593
8. Pygmalion Company had the following account balances on December 31, 2004:
Cash in bank current account
5,000,000
Cash in bank payroll account
1,000,000
Cash on hand
500,000
Cash in bank restricted account for building
construction expected to be disbursed in 2005
3,000,000
Treasury bills, purchased December 15, 2004 and due March 15, 2005 2,000,000
The cash on hand includes a P200,000 check payable to Pygmalion, dated January 15, 2005.
What should be reported as cash and cash equivalents on December 31, 204? (M)
A. 6,300,000
C. 6,500,000
B. 8,300,000
D. 8,700,000
Valix
2. Ralf Corporation had the following account balances at December 31, 2011:

Cash on hand and in bank

P2,500,000
Cash restricted for bonds payable due on June 30, 2012
1,000,000
Time deposit
3,000,000
Savings deposit set aside for dividends payable on June 30, 2012
500,000
The total amount to be reported as cash and cash equivalents as of December 31, 2011 is
A. P5,500,000
C. P6,500,000
B. P6,000,000
D. P7,000,000
Cabarles

7. Ira Company had the following cash balances on December 31, 2004:
Petty cash fund -reimbursed on December 31, 2004
50,000
Cash on hand - undeposited coins and currencies
1,500,000
Cash in bank - unrestricted demand deposit account
4,000,000
Cash in bank - time deposit due January 15, 2005
2,000,000
Cash in bank - money market placement
1,000,000
The company had drawn and recorded checks amounting to P500,000 on December 15, 2004
in payment of accounts payable but the checks are not scheduled to be mailed until January
15, 2005. In exchange for a guaranteed line of credit, Ira has agreed to maintain a minimum
balance of P300,000 in its unrestricted demand deposit account. How much should Ira report
as cash and cash equivalents on December 31, 2004? (M)
A. 7,050,000
C. 9,050,000
B. 6,750,000
D. 8,050,000
CPAR

9. The December 31, 2004 trial balance of Yasmin Company includes the following accounts:
Petty cash fund
50,000
Current account First Bank
4,000,000
Current account-Second Bank (overdraft)
( 250,000)
Money market placement-Third Bank
1,000,000
Time deposit-Fourth Bank
2,000,000
The petty cash fund includes unreplenished December 2004 petty cash expense
vouchers for P15,000 and an employee check for P5,000 dated January 31, 2005.
A check for P100,000 was drawn against First Bank current account dated and recorded
December 29, 2004 but delivered to payee on January 15, 2005.
The Fourth Bank time deposit is set aside for land acquisition in early January 15, 2005.
The December 31, 2004 balance sheet should report cash and cash equivalents at (E)
A. 5,130,000
C. 4,130,000
B. 5,150,000
D. 4,880,000
Valix

10. Cashmere Soap Corporation had the following items listed in its trial balance at 12/31/11:
Currency & coins
$ 650
Balance in checking account
2,600
Customer checks waiting to be deposited
1,200
Treasury bills, purchased on 11/1/11, mature on 4/30/12
3,000
Marketable equity securities
10,200
Commercial paper, purchased on 11/1/11, mature on 1/30/12
5,000
What amount will Cashmere Soap include in its year-end balance sheet as cash and cash
equivalents? (D)
A. $9,450.
C. $7,450.
B. $12,450.
D. $19,650.
S&S 6e
3. Baguio Company had the following account balances on December 31, 2003.
Petty cash fund
50,000
Cash in bank current account
6,000,000
Cash in bank payroll account
1,500,000
Cash on hand
600,000
Cash in bank restricted account for plant additions,
expected to be disbursed in 2004
2,000,000
Treasury bills, due February 15, 2004
1,000,000
The petty cash fund includes, unreplenished December 2003 petty cash expense vouchers of
P20,000 and employee IOUs of P10,000. The cash on hand includes a P100,000 check
payable to Baguio dated January 15, 2004. What should be reported as cash and cash
equivalents on December 31, 2003? (M)
A. 9,050,000
C. 8,020,000
B. 9,020,000
D. 9,520,000
CPAR 4121
11. The following are held by Smite Co.:
Cash in checking account
$20,000
Cash in bond sinking fund account
30,000
Postdated check from customer dated one month
from balance sheet date
250
Petty cash
200
Commercial paper (matures in two months)
7,000
Certificate of deposit (matures in six months
5,000
What amount should be reported as cash and cash equivalents on Smites balance sheet?
A: $57,200
C: $27,450
B: $32,200
D: $27,200
AICPA R05

C. Garfinkle

12. Smartchip Corp. has supplied the following list of its bank accounts and cash as of its fiscal
year-end June 30:
Checking account (compensating balance of $12,000 with no restriction) $ 32,000
Savings account, 5.25%
20,000
Certificate of deposit, 6 months, 10%
50,000
Money market (30-day certificate), current rate, 9.25%
25,000
Payroll checking account
2,000
Certificate of deposit, 2 years, 12 %
50,000
Petty cash
1,000
$180,000

The amount reported as cash account as of June 30 should be (E)

A. $55,000
C. $105,000
B. $180,000
D. $75,000

13. The December 31, 2004 trial balance of Frances Mae Company includes the following
accounts:
Cash in hand
500,000
Petty cash fund
20,000
Security Bank current account
1,000,000
PNB Current account No.1
400,000
PNB Current account No.2
(50,000)
BSP treasury bill - 60 days
3,000,000
BPI time deposit - 30 days
2,000,000
Two months treasury bonds
500,000
The cash on hand includes a customer post dated check P100,000 and a postal money
order of P40,000.
The petty cash fund includes unreplenished petty cash vouchers for P2,000 and an
employee check for P3,000 dated January 31, 2005.
A check for P200,000 was drawn against Security Bank account, dated January 15, 2005,
delivered to the payee and recorded at December 31, 2004.
The BPI time deposit is set aside for acquisition of land to be used as a factory sire.
Total cash and cash equivalents on the balance sheet as of December 31, 2004 should be (M)
A. 4,965,000
C. 6,965,000
B. 3,465,000
D. 4,775,000
CPAR

Service Change, Interest, Outstanding Checks

2. How much is the cash balance before adjustments of M&M Co. as of April 30, 1993 if given
data as follows:
Balance per statement sent by the bank as of April 30 P2,100; bank service charge for April
(not previously recorded in the books of M&M) P10; outstanding checks P200; interest on
bank balance credited by the bank during April (not previously recorded on M&Ms books)
P30; deposit in transit P400. (E)
A. P2,300
C. P2,280
B. P2,480
D. P2,500
RPCPA 0593

BANK RECONCILIATION
Cash balance per books
NSF, Deposit in Transit, Outstanding Checks
47. The August 31 bank statement of Kelvin Inc. showed a balance of $113,000. Deducted in
arriving at this amount was a customer's NSF check for $2,400 that had been returned. Kelvin
had received no prior notice concerning this check. In addition to the bank statement, other
records showed there were deposits in transit totaling $17,200 and that outstanding checks
totaled $10,800. What is the cash balance per books at August 31 (prior to adjustments)? (E)
A. $121,800
C. $117,000
B. $119,400
D. $115,400
S, S & S

Balance per bank statement

P11,164
Receipts recorded but not yet deposited in the bank
1,340
Bank charges not recorded
16
Note collected by bank and not recorded on books
1,120
Outstanding checks
1,100
NSF checks - not recorded on books nor redeposited
160
Assuming no errors were made, compute the cash balance per books on June 30 before any
reconciliation adjustments.
A. P10,220
C. P11,404
B. P10,460
D. P12,348
Cabarles

Bank Credits, Bank Charges, Deposit in Transit, Outstanding Checks, Certified Check, Book Error
14. The following information pertains to Bindi Company as of December 31, 2009:
Cash balance per bank statement
4,000,000
Checks outstanding (including certified check of P100,000)
500,000
Bank service charge shown in December bank statement
20,000
Error made by Bindi in recording a check that cleared the bank in December
(check was drawn in December for P100,000 but recorded at P10,000)
90,000
Deposit in transit
1,300,000
What is the cash balance per ledger on December 31, 2009?
A. 4,830,000
C. 4,910,000
B. 4,900,000
D. 5,010,000
Siy

Bank Credits, Bank Charges, Deposit in Transit, Outstanding Checks, Book Error
1. Stellar Companys bank statement for the month of December included the following
information:
Ending balance, December 31
2,800,000
Bank service charge for December
12,000
Interest by bank to Stellar for December
10,000
In comparing the bank statement to its own cash records, Stellar found the following:
Deposits made but not yet recorded by the bank
350,000
Checks written and mailed but not yet recorded by the bank
650,000
In addition, Stellar discovered that it had drawn and erroneously recorded a check for P46,000
that should have been recorded for P64,000. What is Stellars cash balance per ledger on
December 31? (E)
A. 2,500,000
C. 2,540,000
B. 2,520,000
D. 2,800,000
Siy

Bank Credits, Bank Charges, Outstanding Checks

14. Sandy, Inc. had the following bank reconciliation at March 31, 2012:
Balance per bank statement, 3/31/12
P37,200
Add: Deposit in transit
10,300
47,500
Less: Outstanding checks
12,600
Balance per books, 3/31/12
P34,900
Data per bank for the month of April 2012 follow:
Deposits
P42,700
Disbursements
49,700
All reconciling items at March 31, 2012 cleared the bank in April. Outstanding checks at April
30, 2012 totaled P5,000. There were no deposits in transit at April 30, 2012. What is the cash
balance per books at April 30, 2012? (E)
A. P25,200
C. P30,200
B. P27,900
D. P35,500
Cabarles
Bank debits & credits, NSF checks
2. The information below is from the books of the Seminole Corporation on June 30:

Bank Credits, Bank Charges, NSF Checks, Deposit in Transit, Outstanding Checks, Certified
Check
15. In your audit of Bora Company as of December 31, 2009, you gathered the following
information:
Balance per bank statement
6,000,000
Deposit in transit
3,000,000
Outstanding checks
1,200,000
Customers note collected by bank
750,000
Customers NSF check
147,000
Checkbook printing charge
3,000
Certified checks included in the outstanding checks
400,000
Depositors note charged to account
500,000
The cash balance per book of Bora Company on December 31, 2009 is (M)
A. 7,100,000
C. 8,100,000
B. 7,600,000
D. 8,200,000
Siy

$46,700

$37,200
10,300
47,500
12,600
$34,900

Bank Credits, Bank Charges, NSF Checks, Deposit in Transit, Outstanding Checks, Bank Error
2. The bank statement of S-mart, Inc. for April 1982 showed an ending balance of P169,263.
Deposit in transit on April 30 was P18,200. Outstanding checks as of April 30, were P59,435,
including a P5,000 check which the bank had certified on April 27. During the month of April,
the bank charged back NSF checks in the amount of P3,435 of which P1,835 had been
redeposited by April 20. On April 23, the bank charged S-Marts account for a P2,200 items
which should have been charged against K-mart, Inc., the error was not detected by the bank.
During April, the proceeds from notes collected by the bank for S-Mart, Inc. was P7,548 and
bank charges for this services was P18.
How much is the unadjusted book balance on April 30? (M)
A. P129,298
C. P129,533
B. P141,158
D. PP140,923
RPCPA Adapted
Beginning bank balance, deposits, disbursements, outstanding checks
16. Tresh, Inc. had the following bank reconciliation at March 31, 2010:
Balance per bank statement, 3/31/10
Add: Deposit in transit
Less: Outstanding checks
Balance per books, 3/31/10
Data per bank for the month of April 2010 follow:
Deposits

Disbursements
49,700
All reconciling items at March 31, 2010 cleared the bank in April. Outstanding checks at April
30, 2010 totaled $6,000. There were no deposits in transit at April 30, 2010. What is the cash
balance per books at April 30, 2010?
a. $28,200
c. $34,200
b. $31,900
d. $38,500
AICPA Adapted

Cash Balance per Bank Statement

Bank debits, Deposit in transit, outstanding checks, bank error
3. The cash in bank account of S-mart, Inc. for April showed an ending balance of P129,298.
Deposits in transit on April 30 was P18,200. Outstanding checks as of April 30, were P59,435,
including a P5,000 check which the bank had certified on April 27. During the month of April,
the bank charged back NSF checks in the amount of P3,435 of which P1,835 had been
redeposited by April 20. On April 23, the bank charged S-Marts account for a P2,200 items
which should have been charged against K-mart, Inc., the error was not detected by the bank.
During April, the proceeds from notes collected by the bank for S-Mart, Inc. was P7,548 and
bank charges for this services was P18.
How much is the unadjusted balance per bank on April 30?
A. P88,333
C. P169,263
B. P95,263
D. P173,663
Cabarles

P78,450
6,200

Bank Charges, Co. Error, Deposit in Transit, Outstanding Checks

5. The following information pertains to Benguet Company as of December 31, 2003:
Cash balance per general ledger
6,500,000
Cash balance per bank statement
?
Checks outstanding (including certified check of P100,000)
500,000
Bank service charge shown in December bank statement
20,000
Error made by Benguet in recording a check that cleared the bank
in December (check was drawn in December for P345,000
but recorded at P395,000)
50,000
Deposit in transit
930,000
At December 31, 2003 cash balance per bank statement is (M)
A. 6,530,000
C. 6,100,000
B. 6,000,000
D. 5,900,000
CPAR 4121

Bank Credits, NSF Check, Deposit in Transit,

16. These are data for the month of December 1990:
Balance per books, December 31, 1990
Outstanding checks, December 31, 1990

Cash receipts recorded in books but not yet deposited

14,150
No sufficient fund check
3,500
Note collected by bank, net of P400 service charges not recorded in books
12,600
Following the book to bank procedure approach of reconciliation and based on the above
data, what is the balance per bank statement on December 31, 1990? (M)
A. P79,200
C. P78,800
B. P79,600
D. P52,200
RPCPA 0591
Bank Credits & Charges, Interest, NSF Checks, Deposit in Transit & Outstanding Checks, Bank
Error
17. On March 3, 2004, Able Company received its bank statement. However, the closing balance
of the account was unreadable. Attempts to contact the bank after hours did not secure the
desired information. Thus, you had to prepare a bank reconciliation from the available
information summarized below:
February 28 book balance
1,460,000
Note collected by bank
100,000
Interest earned on note
10,000
NSF check of customer
130,000
Bank service charge on NSF check
2,000
Other bank service charges
3,000
Outstanding checks
202,000
Deposit of February 28 placed in night depository
85,000
Check issued by Axle Company charged to Ables account
20,000
What was the cash balance per bank statement? (M)
A. 1,435,000
C. 1,338,000
B. 1,532,000
D. 1,557,000
CGAC
Constructive Accounting
3. Compute for the bank statement balance using the data below. The cashier misplaced all the
bank statements for the past year. You reviewed the accounting records and discovered that
the following journal entry was made to reconcile the June 30, 1994 bank records and
accounting records.
Accounts receivable
7,601.20
Miscellaneous expense
62.50
Notes receivable
1,000.00
Interest revenue
50.00
Cash
6,613.70
Preadjustment cash balance in the accounting records was P37,102.35, outstanding checks
were P1,037.50 and no other adjustments were required. (M)

A. P31,526.15
B. P37,102.35

C. P38,152.35
D. P30,488.65

RPCPA 1094

18. The cashier misplaced all the bank statements for the past year. You reviewed the accounting
records and discovered that the following journal entry was made to reconcile the June 30,
2012 bank records and accounting records:
Accounts receivable
152,024
Miscellaneous expense
1,250
Notes receivable
20,000
Interest revenue
1,000
Cash
132,274
Pre-adjusting cash balance in the accounting records was P768,370, outstanding checks were
P20,750 and no other adjustments were required.
What is the bank statement balance at June 30, 2012? (E)
A. P615,346.
C. P656,846.
B. P636,096.
D. P768,370
R & E 2012

Adjusted Cash in Bank Balance

Book & Bank to adjusted
19. Smith Co. has a checking account at Small Bank and an interest-bearing savings account at
Big Bank. On December 31, year 1, the bank reconciliations for Smith are as follows:
Big Bank
Small Bank
Bank balance
$150,000
$1,500
Deposit in transit
5,000
Outstanding checks
(8,500)
Book balance
155,000
(7,000)
What amount should be classified as cash on Smith's balance sheet at December 31, year 1?
a. $148,000
c. $155,000
b. $151,000
d. $156,000
AICPA R08

20. Hazelton Manufacturing prepares a bank reconciliation at the end of every month. At the end
of May, the general ledger checking account showed a balance of $1,360 and the bank
statement showed a bank balance of $1,445. Outstanding checks totaled $350 and deposits in
transit were $150. The bank statement listed service charges of $30 and NSF checks totaling
$85. The corrected cash balance is: (D)
A. $1,130.
C. $1,245.
B. $1,160.
D. $1,445.
S&S 6e

21. Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At the end
of July, the balance in the general ledger checking account was $2,750 and the bank balance
on the bank statement was $2,980. Outstanding checks totaled $680 and deposits in transited
were $400. The bank statement revealed that a check written for $120 was incorrectly
recorded by Brockton as a $220 disbursement. The bank statement listed service charges and
NSF check charges totaling $150. The corrected cash balance is: (D)
A. $2,270.
C. $2,470.
B. $2,550.
D. $2,700.
S&S 6e
21. While checking the cash accounts of Bauer Company on December 31, 2009, you find the
following information:
Balance per book
6,500,000
Balance in checking account (outstanding checks per book of P1,660,000) 7,000,000
Deposit in bank closed by BSP
1,500,000
Deposit in transit
1,200,000
Currency and coins on hand
400,000
Petty cash fund (of which P10,000 is in form of paid vouchers)
50,000
Bank charges not yet taken up in book
10,000
Bond sinking fund cash
1,000,000
Receivables from employees
100,000
Error in recording a check in the book. The correct amount as paid
by the bank is P100,000 instead of P150,000 as recorded in the
book or a difference of
50,000
The correct cash in bank balance for Bauer on December 31, 2009 is
A. 6,540,000
C. 6,980,000
B. 6,640,000
D. 8,040,000
Siy
1. The following data pertaining to the cash transactions and bank account of Mandirigma
Company for the month of May are available to you:
Cash balance, per records, May 31
P17,194
Cash balance, per bank statement, 5/31
31,948
Bank service charge for May
109
Debit memo for the cost of printed checks delivered by the bank
125
Outstanding checks, May 31
6,728
Deposit of May 30 not recorded by bank until June 1
4,880
Proceeds of a bank loan of May 30, net of interest of P300
5,700
Proceeds from a customer's promissory note, including interest of P100
8,100
Check No. 2772 issued to a supplier entered in the accounting records at
P2,100 but deducted in the bank statement at an erroneous amount of
1,200

Stolen check lacking an authorized signature, deducted from Mandirigma's

account by the bank in error
Customer's check returned by the bank marked NSF; no entry has
been made in the accounting records to record the returned check
What is the correct cash balance at May 31?
A. P29,200
C. P30,300
B. P30,000
D. P30,900

800

760

Cabarles

13. Rudi Company keeps all its cash in a checking account. An examination of the companys
accounting records and bank statement for the month ended June 30, 2012 revealed the
following information:
The cash balance per book on June 30 is P12,000,000
A deposit of P2,000,000 that was placed in the banks night depository on June 30 does not
appear on the bank statement
The bank statement shows on June 30, the bank collected note for Rudi and credited the
proceeds of P1,400,000 to the companys account
Checks outstanding on June 30 amount to P500,000
Rudi discovered that a check written in June for P200,000 in payment of an account payable,
had been recorded in the companys records as P300,000
Included with the June bank statement was NSF check for P400,000 that Rudi had received
from a customer on June 26
The bank statement shows a P50,000 service charge for June
The cash in bank to be shown on the balance sheet on June 30, 2012 is (E)
A. P11,500,000
C. P13,050,000
B. P12,850,000
D. P13,500,000
Cabarles

Bank & Book to Adjusted

6. The ledger account of Bally Company showed a ledger balance of P1,800,000 on December
31, 2008. The bank statement as of that date showed a balance of P2,100,000. Upon
comparing the statement with the cash records, the following facts were determined:
There were bank service charges for December of P10,000.
A bank memo stated that Alex Inc.s note for P200,000 and interest of P20,000 had been
collected on December 29, and the bank has made a charge of P5,000 on the collection.
No entry had been made in Ballys books when Alex note was sent to the bank for
collection.
Receipts for December 31 for P550,000 were not deposited until January 2.
Checks outstanding on December 31 totaled P325,000.
The bank had charged the Ballys Companys account for a customers uncollectible
check amounting to P43,000 on December 29.

 A customers check for P900,000 had been entered as P600,000 in the cash receipts
journal by Bally on December 15.
Check no. 777 in the amount of P141,000 had been entered in the cash book as
P114,000, and check no. 799 in the amount of P10,000 had been entered as P100,000.
Both checks had been issued to pay for purchases of equipment.
What is the amount of cash to be shown in the December 31, 2008 balance sheet?
A. 1,875,000
C. 2,226,000
B. 2,195,000
D. 2,325,000
Siy
6. The bookkeeper of Ifugao Company recently prepared the following bank reconciliation on
December 31, 2003:
Balance per bank statement
5,500,000
Add: Deposit in transit
200,000
Checkbook printing charge
5,000
Error made in recording check No. 2501 (issued in
December)
100,000
Customer check marked DAIF
45,000
350,000
Total
5,850,000
Deduct: Outstanding checks
300,000
Note collected by bank (includes P25,000 interest) 250,000
550,000
Balance per book
5,300,000
Ifugao has P500,000 cash on hand on December 31, 2003. The amount to be reported as
cash on the balance sheet as of December 31, 2003 should be (M)
A. 5,400,000
C. 4,900,000
B. 5,900,000
D. 5,800,000
CPAR 4121

1,600
5,000

P8,700
210
15,510
P141,930

P126,420

25. The bookkeeper of Santa Clara Co. recently prepared the following bank reconciliation:
Santa Clara Co.
Bank Reconciliation
December 31, 1998
Balance per bank statement
Add:
Deposit in transit
Checkbook printing charge
Error made in recording check No. 25
(issued in December)
NSF check

Deduct:
Outstanding checks
P4,480
Note collected by bank (includes P50
interest
9,500
13,980
Balance per books
P127,950
Santa Clara has P9,100 cash on hand on December 31, 1998.
The amount Santa Clara should report as cash on the balance sheet as of December 31, 1998
should be (D)
A. P120,260
C. P130,640
B. P139,740
D. P132,240
RPCPA 0598

22. Divine Grace Company keeps all its cash in a checking account. An examination of the
company's records for the month ended December 31, 2004 revealed a bank statement
balance of P45,000,000 and a book balance of P50,000,000.
A deposit of P12,000,000 placed in the bank's might depository on December 29, 2004 does
not appear on the bank statement. Checks outstanding on December 31, 2004 amount to
P3,000,000.
The bank statement shows that on December 15. 2004, the bank collected a note for Divine
Grace and credited the proceeds of P5,500,000 to the companys account. The proceeds
included an interest of P500,000, all of which Divine Grace earned during 2004.
Divine Grace Company discovered that a check written on December 20, 2004 for P900,000 in
payment of an account had been recorded by Divine Grace as P600,000
Inducted with the December 31, 2004 bank statement was an NSF check of P1,000,000. The
bank statement also shows a P200,000 service charge.
The cash in bank on December 31, 2004 balance sheet should be (M)
A. 54,000,000
C. 54,300,000
B. 53,500,000
D. 50,000,000
CPAR
A. 4,500,000
C. 5,400,000
B. 5,350,000
D. 5,550,000

7. What is the amount of cash receipt per ledger for July?

A. 8,400,000
C. 9,400,000
B. 9,000,000
D. 9,600,000

8. What is the amount of cash disbursements per ledger for July?

A. 6,550,000
C. 6,850,000
B. 6,700,000
D. 7,000,000