The current assets of Multi Company on December 31, 2001 include the following:

Cash on hand P 50,000

Petty cash fund 10,000
Cash in bank 200,000
Accounts receivable 400,000
Inventory 500,000
Marketable equity securities 145,000
Deferred charges 20,000
Total P1,325,000
A. Cash on hand includes:
 Customer’s check of P4,000 returned by bank on December 26, 2001 due to
insufficient funds but subsequently redeposited and cleared by bank on January 5,
2002.
 Customer’s check for P6,000 dated January 15, 2002, received December 22, 2001.
 Postal money orders received from customers, P5,000.
 Cash withheld from wages for income tax of employees, P15,000.

B. The petty cash fund consists of the following items on December 31, 2001:
 Currency and coins, P2,800.
 Employees’ vales, P2,000.
 Currency in envelope marked “collections for birthday party”, P1,000.
 Unreplenished petty cash vouchers, P2,000.
 Check drawn payable to petty cashier, P2,200.
C. Included among the checks in payment of accounts payable drawn by Multi against its
current account and recorded in December 2001 are:
 Check written and dated December 22, 2001 and delivered to payee on January 5,
2002, P10,000.
 Check written December 26, 2001 and dated January 21, 2002, delivered to payee
on December 26, 2001, P15,000.

1. How much is the adjusted cash on hand at December 31, 2001?

(a) P40,000 (b) P1,328,000 (c) P5,000 (d) P225,000 A

2. How much is the adjusted petty cash fund balance at December 31, 2001?
(a) P40,000 (b) P1,328,000 (c) P5,000 (d) P225,000 C

3. How much is the adjusted cash in bank balance at December 31, 2001?
(a) P40,000 (b) P1,328,000 (c) P5,000 (d) P225,000 D

4. How much is the correct cash balance on December 31, 2001?

(a) P270,000 (b) P265,000 (c) P275,000 (d) P280,000 A

5. How much is the total current assets at December 31, 2001?

(a) P1,203,000 (b) P1,328,000 (c) P1,355,000 (d) P1,225,000 B

6. Cure Company’s newly hired assistant prepared the following bank reconciliation on
March 31, 2002:
Book balance P1,405,000
 Add: March 31 deposit P 750,000
Collection of note 2,500,000
Interest on note 150,000 3,400,000
Total P4,805,000
Less: Care Company’s deposit to
our account P1,100,000
Bank service charge 45,000 1,145,000
Adjusted book balance P3,660,000
Book balance P5,630,000
Add: Error on check no. 123 45,000
Total P5,675,000
Less: Preauthorized payments for
light and water bills P 205,000
NSF checks 220,000
Outstanding checks 1,650,000 2,075,000
Adjusted bank balance P3,600,000
Check No. 123 was made for the proper amount of P249,000 in payment of account.
However, it was entered in the cash payments journal as P294,000. Cure authorized the
bank to automatically pay its light and water bills as submitted directly to the bank. The
correct cash in bank balance is:
(a) P3,660,000 (b) P3,600,000 (c) P3,630,000 (d) P2,880,000
C

7. If the month-end bank statement shows a balance of P36,000, outstanding checks are
P12,000, a deposit of P4,000 was in transit at month-end, and a check for P500 was
erroneously charged by the bank against the account, the correct balance in the bank
account at month-end is:
(a) P27,500 (b) P28,500 (c) P20,500 (d) P43,500 B

8. The following pertains to Mine Company on December 31, 2002:

Bank statement balance P5,000,000
Checkbook balance 5,600,000
Deposit in transit 2,000,000
Outstanding checks, including P100,000
certified check 500,000
In Mine’s December 31, 2002 balance sheet, cash should be reported at:
(a) P6,600,000 (b) P6,500,000 (c) P7,100,000 (d) P7,200,000 A

For items 36 and 37:

Apache Company provides the following information for the purpose of reconciling the cash
balance per book with balance per bank statement on December 31, 2001.
1. The bank statement showed a balance of P200,000 on December 31.
2. Outstanding checks as of December 31 amounted to P50,000, including a P10,000
certified check.
3. Deposit in transit on December 31 was P20,000.
 4. During December, the bank charged back NSF checks of P15,000, of which P5,000 had
been redeposited and cleared by December 27.
5. On December 23, the bank erroneously credited the account of Apache for P30,000
representing proceeds of loan granted to another company.
6. During December, the proceeds from notes collected by the bank for Apache amounted
to P75,000, net of service charge of P2,000.

9. What is the cash balance to be shown on the balance sheet on December 31, 2001?
(a) P140,000 (b) P85,000 (c) P150,000 (d) P180,000 C

10. What is the cash balance per Apache Company’s ledger on December 31, 2001?
(a) P200,000 (b) P85,000 (c) P150,000 (d) P180,000 B

For items 38 to 40:

Bored Company is making a four-column reconciliation at June 30 from the following data.
The amounts per bank statement were: Balance - May 31, P6,500; June receipts, P13,000;
June disbursements, P11,000. The amounts per books were: Balance – May 31, P7,635;
June receipts, P11,548; June disbursements, P11,235; Balance – June 30, P7,948.
May 31 June 30
Deposits in transit P1,200 P1,500
Outstanding checks 670 840
The bank overlooked a check for P75 when
recording a deposit on June 10
Note collected by bank, recorded after
receiving the bank statement 1,800
NSF checks recorded after receiving
bank statement 560 480
Service charge, recorded after receiving
the bank statement 45 60
Bored recorded a P374 check received from
a customer in June as P347

11. The corrected balance per bank on June 30 is:

(a) P9,085 (b) P9,160 (c) P9,235 (d) P10,075 C

12. The corrected June receipts per books is:

(a) P11,575 (b) P13,300 (c) P13,346 (d) P13,375 D

13. The corrected June disbursements per books is:

(a) P10,830 (b) P11,170 (c) P11,250 (d) P11,300 B

The following information is shown in the accounting records of Manolito Company for the year2008:
Balances as of January 1:

Cash P620,000
Accounts receivable 670,000

Merchandise inventory 860,000

Accounts payable 530,000

Balances as of December 31:

Accounts receivable 910,000

Merchandise inventory 780,000

Accounts payable 480,000

Total sales and cost of goods sold for 2008 were P7,980,000 and P5,830,000, respectively. Allsales and
all merchandise purchases were made on credit. Various operating expenses ofP1,070,000
were paid in cash. Assume that there were no other pertinent transactions. Thecash balances on
December 31, 2008 would be:

Cash balance, January 1 P620,000 Collections of accounts (670,000 + 7,980,000 - 910,000) 7,740,000
Payments of accounts (530,000 + 5,750,000 * - 480,000) (5,800,000) Payment of various operating
expenses (1,070,000) Cash balance, December 31 P1,490,000* 7,980,000 + 780,000 – 860,000

14. The balance sheet a De of the books disclosed the following:

a cash balance of P200.000. An examination sales of P15,000 from January 1 to 7, were predated as of
December 28 to 31, and charged to the cash account.

b. Customer's checks totaling 5.000 deposited with and returned by the bank, NSF, on December 22
were not recorded in the books

c. Checks of P6,500 in payment of liabilities were prepared before December 31, and recorded in the
books, but withheld by the treasurer.

d. Customer's postdated checks totaling P4,300 are being held by the cashier as part of cash. The
company's experience shows that postdated checks are eventually realized.

e. The cash account includes(P30,000 being reserved for the purchase of a mini-computer which will be
delivered soon.

How much cash balance is to be shown on the December 31 balance sheet?200-15-5+6.5-4-30

A5) On December 31, 2018, the Forest Company showed a cash balance of P481,900 which was
composed on the following:

Demand deposit P150,000

Time deposit that cannot be withdrawn until 2 years 100,000

Undeposited postdated check1,500

Customer's NSF check9,000

Customer check dated 20 months ago300

Deposit in a foreign bank, at current rate of exchange, but cannot be withdrawn 60,000

Overdraft in another bank (7,000)

Cash advances to officers and employees 8,100

Sinking fund cash 100,000

Pension fund cash 59,000

Petty cash fund 1,000/

What is the correct cash balance at December 31, 2018 current asset section of the balance
sheet?150+1=151