PROBLEM 8:
Shown below is the May 31, 2020, bank reconciliation prepared by HALALAN CORP.’s staff:
Halalan Corp.
Bank Reconciliation: BPI Acct No. 0021261
May 31, 2020
Bank balance
Add: Deposit in transit
Total
Less: Outstanding checks
No. 640
652
653
Adjusted balance
P652,000
10,000
P662,000
P10,000
8,000
2,000
Book balance
Add: Proceeds of note receivable collected in May
Deposit on May 31 not recorded on books
until June
Total
Less: Bank service charge
Adjusted balance
20,000
P642,000
P570,800
P70,000
2,000
72,000
P642,800
800
P642,000
The June 2020 bank statement is shown below:
Date
June
June
June
June
June
June
June
June
June
June
1
8
11
13
16
21
27
29
30
30
SV – Service Charge
EC – Error Corrected
Bank of the Philippine Island
From May 31, 2020 to June 30, 2020
Account No.: 0021261
Checks
P8,000
2,000
14,000
1,000 DM
4,000
12,000
18,000
1,000 EC
200 SV
3,000 DM
Deposit
P10,000
20,000
1,000
56,000
1,000
EC
DM – Debit Memo
CM – Credit Memo
The paid checks accompanying this bank statement (all clearing in June) are the following:
No. 652
P8,000
No. 653
2,000
No. 654
14,000
No. 655
4,000
No. 657
12,000
No. 658
18,000
The check register reveals that the last check issued in June is No. 659 for P5,000 and that check
no. 656 is for P2,600. Cash received for the period June 22 through June 30 of P70,000 was
deposited in the bank on July 1. The bank erroneously charged the company P1,000 on June 29
but immediately corrected the error on the same date.
The debit memos on June 13 and June 30 represent customers’ NSF checks returned by the
bank. The June 13 NSF check was immediately redeposited without entry. The June 30 NSF
check was redeposited on July 1 without entry.
1. What is the total bank receipts in June per bank statement?
a. 87,000
b. 88,000
c. 77,000
d. 78,000
2. What is the total bank disbursements in June per bank statement?
a. 59,200
b. 58,000
c. 58,200
d. 63,200
3. What is the balance per bank statement on June 30, 2020?
a. 676,800
b. 627,200
c. 732,400
4. What is the total receipts in June per books?
a. 88,000
b. 220,000
c. 146,000
d.
729,200
d. 218,000
5. What is the total disbursement in June per books?
a. 53,000
b. 57,400
c. 56,400
d. 63,200
6. What is the cash balance per books on June 30, 2020?
a. 732,200
b. 729,200
c. 732,400
d. 676,800
PROBLEM 9:
You are auditing the cash of Saluyot Corp. for the fiscal year ended September 30, 2020.
The bank reconciliation prepared by the accountant of Saluyot Corp. for the months of August is
presented below:
Bank balance, per bank statement
P156,000
Add: Deposit in transit, August 31
2,700
Total
158,700
Less: Outstanding checks:
No. 547
P600
561
5,400
562
4,200
565
1,800
12,000
Adjusted balance
P146,700
Book balance, per general ledger
Add: Proceeds of note receivable collected
by bank in August
Deposit made in bank on August 31
not recorded on books until
September
Total
Less: Bank Service charge
Adjusted balance
P120,000
24,000
3,000
147,000
300
P146,700
There was no available bank reconciliation for the month of September, instead, the accountant
provided you a copy of the September bank statement to aid you in your audit.
The September bank statement included the following bank debits and credits:
Credits
Date
Particulars
Debits
August
31
September 1
Chk #561
5,400
2,700
September 6
Chk #562
4,200
September 9
Chk #565
1,800
30,000
September 12
420 DM
420
September 15
Chk #566
3,000
September 17
600
September 20
Chk #567
2,100
42,000
September 27
Chk #569
4,320
September 29
300 EC
300
September 30
1,320 SV
September 30
900 DM
September 30
Chk #570
5,460
SV—Service charges
DM—Debit Memo
EC—Error Corrected
CM—Credit Memo
EC
Further investigation revealed the following information:
a. All book reconciling items during August has been recorded in September
b. The check register revealed that the last check issued in September was No. 571 for
P3,000 and that check No.568 was P7,200.
c.
Cash received for the period September 25 through 31 of P28,200 was deposited in the
bank on October 1.
d. The debit memo on September 12 and September 30 were customer NSF checks returned
by the bank. The check on September 12 was immediately redeposited without entry. The
check returned on September 31 was redeposited by the client in the bank on October 1
also without entry.
e. Among the bank credits for the month was P600 deposit of Baluyot Corp. credited by the
bank to the company’s account.
Required: Based on your audit procedures and appreciation of the above data, answer the
following:
1.
How much is the unadjusted bank balance as of September 30, 2020?
a. 101,100
b. 109,200
c. 192,900
d. 202,800
2.
How much is the total book receipts for September?
a. 75,420
b. 106,620
c. 127,200
3.
How much is the total book disbursements for September?
a. 25,080
b. 25,380
c. 26,280
d. 29,220
4.
How much is the unadjusted book balance as of September 30, 2020?
a. 221,820
b. 222,120
c. 224,620
d. 224,920
5.
How much is the adjusted cash balance as of September 31, 2020?
a. 219,000
b. 219,600
c. 220,200
d. 221,820
d. 129,900
PROBLEM 10:
The following information was obtained in connection with the audit of Wise Company’s cash
account as of December 31, 2020:
Outstanding checks, 11/30/2020
P16,250
Outstanding checks, 12/31/2020
12,500
Deposit in transit, 11/30/2020
12,500
Cash balance per general ledger 12/31/2020
37,500
Actual company collections from its customers during December
152,500
Company checks paid by bank in December
130,000
Bank service charges recorded on the company books in
2,500
December
Bank service charges per December bank statement
3,250
Deposits credited by bank during December
145,000
November bank service charges recorded on company books in
1,500
December
The cash receipts book of December is underfooted by P2,500.
The bank erroneously charged the company’s account for a P3,750 check of another depositor.
This bank error was corrected in January 2021.
1. How much is the deposit in transit on December 31, 2020?
a. 5,000
b. 20,000
c. 22,500
d. 17,500
2. The total unrecorded bank service charges as of December 31, 2020?
a. 750
b. 2,250
c. 1,750
d. 4,250
3. What is the total book receipts in December?
a. 150,000
b. 152,500
c. 155,000
d. 147,500
4. What is the total amount of company checks issued in December?
a. 130,000
b. 123,000
c. 133,750
d. 126,250
5. What is the total book disbursements in December?
a. 123,750
b. 128,500
c. 126,250
d. 128,750
6. What is the book balance on November 30, 2020?
a. 16,250
b. 21,250
c. 37,500
d. 35,000
7. What is the bank balance on November 30, 2020?
a. 23,000
b. 18,500
c. 43,500
d. 16,250
8. What is the total bank receipts in December?
a. 120,000
b. 140,000
c. 145,000
9. What is the total bank disbursements in December?
a. 154,500
b. 132,500
c. 129,500
d. 150,000
d. 137,000
10. What is the bank balance on December 31, 2020?
a. 21,500
b. 26,500
c. 31,000
d. 33,250
PROBLEM 11:
In your audit of I-Bot Inc.’s cash account as of December 31, 2020, you ascertained the following
information:
The bookkeeper’s bank reconciliation on November 30, 2020, is as follows:
Bank balance per bank statement, November 30
Add: Deposit in transit
Total
Less: Outstanding checks
No. 3408
P440
3413
300
3414
6,820
3416
3,924
3417
800
Balance
Add: Bank service charge for November
Balance per books
*Entered in Check Register in December
P24,298
3,648
P27,946
12,284
P15,662
36 *
P15,698
The Cash Receipts Journal shows a total receipts for December of P371,766. The Check Register
reflects total checks issued in December of P377,632. A collection of P5,912 was recorded on
company books on December 31 but was not deposited until January 2, 2021.
The balance per bank statement at December 31, 2020, is P17,516. This statement shows total
receipts of P373,502 and checks and other charges paid of P380,284.
Your examination revealed the following additional information:
a. Check no. 3413 dated November 24, 2020, was entered in the Check Register as P300.
Your examination of the paid returned with the December bank statement reveals that the
amount of the check is P30.
b. Check no. 3417 was mutilated and returned by the payee. A replacement check (no.
3453) was issued. Both checks were entered in the Check Register but no entry was
made to cancel check no. 3417.
c. The December bank statement includes an erroneous bank charge of P480.
d. On January 3, 2021, the bank informed your client that a December bank charge of P42
was omitted from the statement.
e. Your examination of the bank credit memo accompanying the December bank statement
discloses that it represents proceeds from the note collection in December for P4,000.
f. The outstanding checks at December 31, 2020, are as follows:
No. 3408
P440
No. 3417
800
No. 3418
2,814
No. 3419
5,788
1. What is the total book disbursements for the month of December?
a. 377,668
b. 377,710
c. 377,632
d. 377,596
2. What is the book balance at December 31?
a. 9,832
b. 9,868
c. 9,754
d. 9,796
3. What is the total outstanding checks at December 31?
a. 8,602
b. 9,072
c. 9,042
d. 9,842
4. What is the adjusted bank balance on November 30?
a. 16,690
b. 16,732
c. 16,804
d. 16,774
5. What is the adjusted book receipts for the month of December?
a. 375,724
b. 371,766
c. 371,238
d. 375,766
6. What is the adjusted book disbursements for the month of December?
a. 377,590
b. 377,662
c. 377,674
d. 377,632
7. What is the adjusted book balance on December 31?
a. 14,824
b. 14,866
c. 14,908
d. 14,782
PROBLEM 12:
Halal Corp. has a current account in PNB. Your audit of the company’s cash account reveals the
following:
a. Balances taken from the company’s general ledger:
Cash balance, November 30, 2020
Cash balance, December 31, 2020
Receipts, December 1 – 31, 2020
P637,860
576,420
306,220
b. Balances taken from the December bank statement:
Bank balance, November 30, 2020
Bank balance, December 31, 2020
Disbursements (debit)
P685,180
637,220
356,080
c.
Outstanding checks, November 30, 2020 (P26,140 was paid by the bank in December),
P64,140.
d. Checks written and recorded in December; not included in the checks returned with the
December bank statement, P36,080.
e. Deposit in transit, November 30, 2020, P15,260.
f.
Deposit in transit, December 31, 2020, P16,140.
g. A bank credit memo was issued in December to correct an erroneous charge made in
November, P1,500.
h. Note collected by bank in December (company was not informed of the collection),
P2,060.
i.
A check for P2,020 (payable to a supplier) was recorded in the Check Register in
December as P3,000.
j.
A check for P2,240 was charged by the bank as P2,420 in December.
k. Halal Co. issued a stop payment order to bank in December. This pertains to a check
written in December which was not received by the payee. A new check was written and
recorded in the Check Register in December. The old check was written off by a journal
entry also in December, P780.
l.
Bank service charge, November 30, 2020, P60.
Requirements:
1. What is the total book disbursements in December?
a. 367,660
b. 244,780
c. 369,720
2. What is the total bank receipts in December?
a. 260,160
b. 308,120
c. 306,060
d. 368,540
d. 309,020
3. What is the total outstanding check on December 31?
a. 100,220
b. 38,000
c. 62,220
d. 74,080
4. What is the adjusted bank balance on November 30?
a. 636,300
b. 685,180
c. 637,800
d. 634,800
5. What is the adjusted book receipts in December?
a. 307,500
b. 306,220
c. 303,380
d. 305,440
6. What is the adjusted bank disbursements in December?
a. 353,980
b. 365,840
c. 345,960
d. 366,020
7. What is the adjusted book balance on December 31?
a. 577,500
b. 577,400
c. 576,420
d. 579,460