Beruflich Dokumente
Kultur Dokumente
Part I: Theory
A.
1. A proof of cash may be useful in discovering possible cash discrepancies, such as when cash
receipts have been recorded but not deposited.
Answer: True
Explanation/Verification:
Proof of cash
A proof of cash is an expanded reconciliation in that it includes proof of receipts and disbursements.
This approach may be useful in discovering possible discrepancies* in handling cash particularly when
cash receipts have been recorded but have not been deposited.
B.
2. Charlee Company maintains two checking accounts. A special account is used for the weekly
payroll only, and the general account is used for all other disbursements. Every week, a check in
the amount of net payroll is drawn on the general account and on the payroll account. The
company maintains a P100, 000 minimum balance on the payroll account . On a monthly bank
reconciliation, the payroll account should
a. Show a zero balance per the bank statement - wrong
b. Show a P100,000 per the bank statement - wrong
c. Reconcile to P100,000
d. Be reconciled jointly with the general account in a single reconciliation - wrong
Explanation/Verification:
General account is used for all other disbursements – Bank account
Payroll account – cash account
A check in the amount of net payroll is drawn on the general account and on the payroll account.
Meaning, “on the payroll account”, yung cash ng payroll account ay dineposit sa bank account.
The amount P100,000 maybe DIT, so reconciliation is necessary to ensure that the amount P100,000 is
also included in the bank receipts and added to bank balance.
Part II: Problem
June 30 July 31
Cash account balance P15, 822 P 39, 745
Bank statement balance 107,082 137,817
Deposit in transit 8,201 12,880
Outstanding checks 27,718 30,112
Bank service charge 72 60
Customer’s check deposited July 10, returned by bank on
July 16 marked NSF and redeposited immediately; no
entry made on books for return or redeposit 8,250
Collection by bank of company’s receivable 71,815 80,900
The bank statements and the company’s cash records show these totals:
Explanation verification:
a. Credit memos of the previous month (July) do not affect* the bank receipts for the current month but
increased the book receipts for the current month because the credit memos for the previous month are
recorded only by the depositor during the current month (June).
* “Credit memos (nakikita sa bank) recorded in June does not affect the bank receipts of July.
* Yung entries ng book for May ay nirecord ng June, di dapat makaapekto ang entries for May na
nirecord sa June sa July.
Consequently, the book receipts for the current month are overstated in relation to the correct receipts for
the current month. Hence, credit memos of the previous month are deducted from the book receipts for
the current month.
Thus, the June note collected amounting to 71,815 is deducted from July book receipts.
b. Credit memos of the current month (July) already increased the bank receipts for the current month
but have no effect on the book receipts for the current month because the credit memos of the current
month are not yet recorded by the depositor during the current month.
Consequently, the book receipts for the current month are understated in relation to correct receipts for
the current month. Hence, credit memos of the current month are added to the book receipts for the
current month.
Thus, the July note collected, amounting to P 80,900 is added to the July book receipts.
Explanation/Verification:
2. The records of Pascal Company showed Cash in bank balance, March 31 – 200,000; Book credits for
April – 720,000; Book debits for April – 800,000; Bank statement balance , March 31 – 330,000; Bank
debits – 530,000; Bank credits – 700,000
March April
Note collected by bank 60,000 100,000
Service charge 8,000 2,000
NSF Check 20,000 30,000
Deposit in transit 80,000 220,000
Outstanding checks 178,000 372,000
Prepare a proof of cash for the month of April following the “book to bank” method.
Answer:
Explanation/Verification:
a. Credit memos of the previous month (February) do not affect the bank receipts for the current month
but increased the book receipts for the current month because the credit memos for the previous month
are recorded only by the depositor during the current month (March).Therefore, the bank receipts are
overstated in relation to the correct book receipts. Hence, deduct 60,000 to book receipts.
b. Credit memos of the current month already increased the bank receipts for the current month but have
no effect on the book receipts for the current month because the credit memos of the current month are
not yet recorded by the depositor during the month (April). Therefore, Hence, 100,000 is added to
receipts
c. Debit memos for the previous month do not affect the bank disbursement for the current month but
increased the book disbursements because the debit memos of the previous month are recorded only by
the depositor during the current month (March).
Book disbursement – overstated in relation to the correct disbursements for April, hence must deduct
8,000 to book disbursement to offset against the decreased 8,000 on March book balance in order to have
no effect in the book balance of April.
d. Debit memos of the current month (April) already increased bank disbursements for the current month
but have no effect on the book disbursements for the current month (April) because the debit memos of
the current month (April) are not yet recorded by the depositor.
Book Disbursement – understated in relation to the correct disbursements for April, hence add 2,000 to
book disbursement and in order to deduct the 2,000 in April book balance.
The March recorded DIT and Outstanding checks stills no effect on April Book balance.
The April DIT and Outstanding checks has a reverse effect on April Book balance.