Problem 3:

A surprise count of the Calamay Company’s imprest petty cash fund carried on its
records at P5,000 was made in November 10, 2015.

The company acts as agent for an express company in the issuance and sale of money
orders. Blank money orders are held by the cashier for the issuance upon payment of the
designated amounts by employees. Settlement with the express company is made weekly with
its representative, who calls at the Calamy Company office. At that time, he collects for orders
issued, account for unissued orders, and leaves additional blank money orders, serially
numbered.

The count of the items presented by the cashier as composing fund was as follows:

Currency( bills and coins) P2,200

Cashed Checks 500
Vouchers (made out in pencil and signed by recipients 740
NSF Checks(dated June 10 and 15, 2015) 260
Copy of petty Cash receipts Vouchers:
200
Return of expense advance
Sale of money orders (No. A11-20) 100 300
Blank money orders claimed to have been purchased for
600
P100 each from express company (No. A21-29)
At the time of the count, there were also on hand the
following:
Unissued money orders (A30-40)
Unclaimed wage envelopes (sealed and amounts
not shown)

The following day, the custodian of the fund produced vouchers aggregating P400 and
explained that these had been temporarily misplaced the previous day. They were for wage
advances to employees.

Question: the proper composition of fund at November 10, 2015

Answer:

Currency and coins P 2,200

Cashed checks 500
Vouchers 740
NSF checks 260
Total P 3,700
Less: Petty cash receipt vouchers
Return of expense advance P 200
Sale of money orders 100 300
Balance of Fund per count P 3,400
Balance of Fund per records 5,000
Shortage (P 1,600)
4.

The controller of Le Company is attempting to determine the amount of cash to be reported on

its December 31, 2016 balance sheet. The following information is provided:

a. Commercial savings account of P1,000,000 and a commercial checking account balance of

P900,000 are held at Phil. Banking Corporation.
b. Money market fund account held at Allied Bank, P600,000
c. Travel advance of P180,000 for executive travel for the first quarter of next year (employee
to reimburse through salary reduction)
d. A separate fund in the amount of P1,500,000 is restricted for the retirement of long-term
debt.
e. Petty cash fund, P5,000
f. An IOU from Chin Cha, a company officer, in the amount of P10,000.
g. A bank overdraft of P110,000 has occurred at one of the banks the company uses to deposit
its cash receipts. At the present time, the company has no other deposits at this bank.
h. The company has two certificates of deposit, each totaling P500,000. These certificates of
deposit have a maturity of 120 days.
i. Pacatang Company has received a check that is dated January 12, 2017 in the amount of
P125,000.
j. Currency and coins on hand amounted to P5,300.
Question:
Adjusted cash and cash equivalents balance at December 31, 2016 is:
Answer:

Commercial Saving Account P 1,000,000

Commercial Checking Account 900,000
Petty Cash Fund 5,000
Currency and coins on hand 5,300
Adjusted CCE P 1,910,300

Problem 5.

Cash on hand P 500,000

Current Account- PNB 800,000
Current Account- City Bank (100,000)
Savings Account- BPI (for equipment acquisition) 600,000
BSP Treasury Bill- 90 days 350,000
Petty Cash Fund 50,000
Total Cash and Cash equivalents 2,200,000

A customer check amounting to P30,000 dated January 2, 2017 was included in the December
31, 2016 Cash in bank-PNB account.
Another customer check for 100,000 deposited on December 22, 2016 was included in the cash
in bank PNB account but returned by the bank as NSF. This check was redeposited on
December 26, 2016 and cleared two days later.

A P400,000 check payable to supplier dated and recorded on December 30,2016 was mailed
on January 16, 2017. This account relates to the City Bank account.

A petty cash account comprised the following on December 31, 2016:

Coins and Currencies 5,000

Petty Cash Vouchers 43,000
Return Value of 10 cases of drinks 2,000

A check of 43,000 was drawn on December 31, 2016 payable to petty cash fund.

Question: What total amount should be reported as CASH on December 31, 2016?
Answer:

Cash on Hand P 500,000

Current Account PNB (800,000-30,000) 770,000
Current Account City Bank ((100,000)+400,000) 300,000
Petty Cash:
Coins and Curriencies 5,000
Replenishment Check 43,000 48,000
Total Cash 1,618,000