BASIC PROBLEMS

Problem1.1

Cash in Checking Account

Cash in Money market account
Treasury bill purchased November 1, 2019 maturing January 31, 2020
Total cash and cash equivalent

Problem1.2

Cash in bank-current account

Cash in bak-payroll account
Cash on hand
Time deposit, purchased December 16, 2019 and due march 16, 2020
Total cash and cash equivalents

Problem1.3
Checkbook balance 3,750,000.00
Undelivered check drawn on Bebelinda's account 500,000.00
Adjusted cash balance 4,250,000.00

CL NCL
Check drawn on Bebelinda's account 500,000.00
Cash in Sinking fund 2,000,000.00
Total 500,000.00 2,000,000.00

Problem1.4
Cash cash and CCE CCE
Cash on Hand 356,000.00 356,000.00
Demand deposit 4,444,000.00 4,444,000.00
Certificate of deposit 2,000,000.00 2,000,000.00
Petty cash fund 55,000.00 55,000.00
Traveler's check 150,000.00 150,000.00
Manager's check 100,000.00 100,000.00
Money order 200,000.00 200,000.00
Total 5,305,000.00 7,305,000.00 2,000,000.00

Problem1.5
Cash CE
Cash-coin,currency, saving and checking 2,489,000.00
Government treasury bills 3,000,000.00
Commercial papers 1,117,000.00
Total 2,489,000.00 4,117,000.00

Problem1.6

Cash in Bank 2,250,000.00

Cash on Hand 125,000.00
Total 2,375,000.00

Problem 1.7
Cash in bank 1,800,000.00
Less: compensating balance legally restricted (600,000.00)
Adjusted cash in bank 1,200,000.00
Time deposit 250,000.00
Petty cash fund 50,000.00
Total 1,500,000.00

Problem1.8

Petty cash fund 20,000.00

Undeposited receipts 1,500,000.00
Less: posdated customer check (100,000.00) 1,400,000.00
Cash in bank 2,500,000.00
Less: outstanding check (200,000.00) 2,300,000.00
Total 3,720,000.00

Problem1.9

Checkbook balance 5,000,000.00

NSF customer check (500,000.00)
Undelivered company check 300,000.00
Adjusted cash balance 4,800,000.00

Problem1.10

Coins and currency 3,300.00

Check drawn by the entity to the order of the petty casg custodian 2,700.00
Correct amount of petty cash fund 6,000.00

Problem1.11

Currencies 20,000.00
Coins 2,000.00
Check drawn to the order of the petty cash custodian 15,000.00
Total 37,000.00
 Note:
Under PAS 7, treasury bill, money market placement and time deposit normally qualify as cash equivalents
400,000.00 only when they have a short maturity of three month or less from the date of acquisition.
800,000.00
3,850,000.00 Time deposit is not a cash and cash equivalent because the term is four months.
5,050,000.00

Note:
The cash in bank set aside for payroll is included in cash because it is for the payment of current liability.
4,500,000.00
1,000,000.00 The cash on hand is reduced by the postdated check payable to Babaloo. The post dated check should be re
578,000.00 to accounts receivable.
1,500,000.00
7,578,000.00
mally qualify as cash equivalents

he payment of current liability.

The post dated check should be reverted

BASIC PROBLEMS

Problem2.1

Balance per bank 1,813,500.00

Deposit in Transit 285,000.00
Total 2,098,500.00
Outsatnding checks (143,000.00)
Adjusted bank balance 1,955,500.00

Problem2.2

Balance per bank statement 3,197,350.00

Deposit in Transit 520,440.00
Outstanding checks (523,000.00)
Bank error- erroneous bank credit (40,000.00)
Adjusted bank balance 3,154,790.00

Unadjusted book balance (SQUEEZE) 3,209,790.00

Bank service charge (5,000.00)
NSF Check (50,000.00)
Adjusted cash in bank balance 3,154,790.00

Problem2.3

Per book 1,000,000.00

Bank service charges (3,000.00)
Note collected by bank 375,000.00
Interest on note 15,000.00
NSF (62,000.00)
Note charged to account (250,000.00)
Adjusted book balance 1,075,000.00

Unadjusted balance per book 1,010,000.00

Deposit in Transit 300,000.00
Outstanding checks (235,000.00)
Adjusted cash in bank 1,075,000.00

Problem2.4
Balance per bank 1,386,000.00
Deposit In Transit 315,000.00
Outstanding checks (590,000.00)
Erroneous bank credit (200,000.00)
Adjusted cash in bank 911,000.00

Problem2.5

Balance per book 8,500,000.00

Note collected by bank 950,000.00
Total 9,450,000.00
Book error (180,000.00)
NSF (250,000.00)
Service Charge (20,000.00)
Adjusted book balance 9,000,000.00

Problem2.6

February 28 book balance 1,460,000.00

Note collected by bank 100,000.00
Interest earned on note 10,000.00
NSF check (130,000.00)
Bank Service charges (5,000.00)
Adjusted book balance 1,435,000.00

Balance per bank statement (SQUEEZE) 1,532,000.00

Deposit in Transit 85,000.00
Bank error-erroneous charge 20,000.00
Outstanding checks (202,000.00)
Adjusted bank balance 1,435,000.00

Problem2.7

Balance per bank 2,800,000.00

Deposits in transit 350,000.00
Outstanding checks (650,000.00)
Adjusted bank balance 2,500,000.00

Balance per ledger (SQUEEZE) 2,520,000.00

Interest income 10,000.00
Interest income (12,000.00)
Service charge (18,000.00)
Adjusted book balance 2,500,000.00

COMPREHENSIVE PROBLEMS

Problem2.1
Book Bank
1) Unadjusted balances 85,000.00 130,350.00
Bank service charge (2,000.00)
Deposits in Transit 49,000.00
Outstanding Checks (17,650.00)
Collection of note 136,000.00
Erroneous bank deposit 54,600.00
Transposition error (2,700.00)
Adjusted Balances 216,300.00 216,300.00

2) Banakce per books 36,420.00

Unrecorded and undeposited customer's check 17,400.00
Bank service charge (1,200.00)
NSF check (13,000.00)
Adjusted cash balance 39,620.00

3) Balance per bank statement 200,000.00

Outstanding checks (15,000.00)
Deposit in Transit 25,000.00
Interest Earned (500.00)
NSF Checks 5,000.00
Balance per books at June 30,2019 214,500.00

4) Balance per books 45,000.00

Bank charges (5,000.00)
Outstanding checks 7,500.00
Deposit in Transit (12,500.00)
Bank credits and collections 15,000.00
Balance per bank 50,000.00

5) Balance per bank statement 175,000.00

Outstanding checks (55,000.00)
Deposits in Transit 37,500.00
Adjusted cash balance 157,500.00
6) Balance per books 225,000.00
Bank collection 4,700.00
Customer's NSF check (1,600.00)
Overstatement of cash receipt (450.00)
Overstatament of cash disbursement 90.00
Adjusted cash balance 227,740.00

Problem2.2

1) Balance per bank statement 585,284.00

Outstanding checks (52,810.00)
Undeposited collections 23,000.00
Error in recording rent check (900.00)
Automatic mortgage payment 18,000.00
Bank service charges 740.00
Bank error- deposit incorreclty credited to Ian Co. (35,000.00)
NSF Check 3,400.00
balance per books 541,714.00

2) Book Bank
Unadjusted balances 541,714.00 585,284.00
Outstanding checks (52,810.00)
Undeposited collections 23,000.00
Error in recording rent check 900.00
Automatic mortgage payment (18,000.00)
Bank service charges (740.00)
Bank error-deposit incorreclty credited to Ian CO (35,000.00)
NSF check (3,400.00)
Adjusted balances 520,474.00 520,474.00

3) Current account balance 520,474.00

Petty cash 8,000.00
Treasury bills 200,000.00
Total cash and cash equivalents 728,474.00

Problem2.3
Book Bank
Unadjusted balances 20,490.00 30,426.00
Outstanding checks
No,178 2,150.00
 No.181 13,217.00 (15,367.00)
Deposit in Transit 11,774.00
Error in recording deposit 250.00
Automatic loan 8,150.00
Interest 82.00
NSF Check (1,000.00)
Bank Service charge (600.00)
Auritmetic Error for
No.179 (500.00)
No.180 (4.00)
No,181 (35.00)
Adjusted balances 26,833.00 26,833.00

Problem2.4

1) Dec. 5 deposit 49,000.00

Dec 8 deposit 14,000.00
Dec.31 deposit in transit 49,000.00
Total collections/book receipts 112,000.00

2) Cash balance, November 30 423,825.00

Add: December receipts 112,000.00
Less: Disbursements per check register (260,693.00)
Cash balance, December 31 275,132.00

3) Outstanding checks, December 31

4321 6,000.00
4340 1,700.00
4345 11,880.00
4347 6,300.00
4348 14,058.00
4349 7,000.00
Total 46,938.00

4) Adjusted cash balance, Nov 30, 2019 423,825.00

5) Book Bank
Unadjusted balances 275,132.00 273,620.00
Depsits in transit 49,000.00
Outstanding checks (46,938.00)
Service charge (1,000.00)
 Interest 1,550.00
Adjusted balances 275,682.00 275,682.00

Problem2.5

1) Sales 6,235,200.00
Accounts Receivable (165,400.00)
Collections from customer 6,069,800.00

2) Cost of sales 4,364,640.00

Merchandise inventory, December 31 69,000.00
Goods available for sale 4,433,640.00
Accounts payable, December 31 (389,650.00)
Payments for purchases 4,043,990.00

3) Issue price of ordinary shares 1,650,000.00

Notes payable-bank 500,000.00
Collections 6,069,800.00
Total cash receipts per books 8,219,800.00

4) Land 1,000,000.00
Building 1,400,000.00
Furniture and fixtures 367,000.00
Operating expenses paid 605,150.00
Payment for purchases 4,043,990.00
Total cash disbursements per books 7,416,140.00

5) Cash receipts per books 8,219,800.00

cash disbursements per books (7,416,140.00)
Cash balance per book, December 3 803,660.00

6) Book Bank
Unadjusted balances 803,660.00 892,000.00
Deposits in transit 384,660.00
Service charge (2,000.00)
Outstanding checks (475,000.00)
Adjusted balances 801,660.00 801,660.00

Problem2.6
1) Principla (SQUEEZE) 27,000.00
Interest 800.00
Collection fee (200.00)
Proceeds credited by bank 27,600.00

2) Book Bank
Unadjusted balances 35,000.00 60,000.00
Note collected by bank 27,600.00
Debit memo for check book (SQUEEZE) (100.00)
Deposit in transit 15,200.00
Transpposition error in recording deposit (9,000.00)
Erroneous bank debit 26,700.00
Petty cash fund (10,000.00)
Erroneous bank credit (11,000.00)
Outstanding checks, net of certified check (29,400.00)
Adjusted balances 52,500.00 52,500.00

3) Cost of checkbook 100.00

4) Petty cash fund per ledger 10,000.00

Petty cash accounted (9,500.00)
Petty cash shortage 500.00

5) Adjusted petty cash fund balance-currency and coin 3,000.00

Problem2.7

1) Deposits in transit, april 30

April 29, collection per CR 53,000.00
April 30, collection per CR 16,850.00
Total 69,850.00

2) Outstanding checks, April 30

4119 31,600.00
4120 83,750.00
4121 5,000.00
4122 120,650.00
Total 241,000.00

3) Bank receipts in April 543,750.00

4) bank disbursements in April 335,300.00

5) Book Bank
Unadjusted balances, April 30 78,250.00 304,000.00
Deposits in Transit 69,850.00
Outstanding checks (241,000.00)
Error in check no. 4115 27,000.00
EFT-rent 16,300.00
Bank collection 68,400.00
Unauthorized signature check (45,150.00)
EFT-insurance (10,950.00)
Service Charge (1,000.00)
Adjusted Balances 132,850.00 132,850.00
BASIC PROBLEMS

Problem3.1

1) Balance per book, Jine 30 3,000,000.00

July bank deposits 9,000,000.00
July bank disbursements (7,000,000.00)
Balance per banks, July 31 5,000,000.00
July deposits in transit 1,000,000.00
July outstanding checks (600,000.00)
Adjusted bank balance 5,400,000.00

2) Balance per book-July 31 (SQUEEZE) 5,350,000.00

Note collected by bank in July 200,000.00
NSF customer check in July (140,000.00)
Service charge in July (10,000.00)
Adjusted book blance 5,400,000.00

3) Deposits per bank statement for July 9,000,000.00

Note collected by bank in July (200,000.00)
Deposits in transit, June 30 (400,000.00)
Deposits in Transit-July31 1,000,000.00
Cash receipts per book for July 9,400,000.00

4) Disbursements per bank statement for July 7,000,000.00

NSF Check in July (140,000.00)
Service charge in July (10,000.00)
Outstanding checks-June 30 (900,000.00)
Outstanding checks-July 31 600,000.00
Cash disbursements per book for July 6,550,000.00

Balance per book-June 30 2,500,000.00

Book receipts for July 9,400,000.00
Book disbursements for July (6,550,000.00)
Balance per book- July 31 5,350,000.00

Problem3.2

1) Balance per bank-November 30 3,600,000.00

December deposits 5,500,000.00
December disbursements (4,400,000.00)
Balance per bank-December 31 4,700,000.00
Deposits in Transit- December 700,000.00
 Putstanding checks-December (500,000.00)
Adjusted bank balance-December 31 4,900,000.00

2) Balance per book- December 31 (SQUEEZE) 4,300,000.00

Note collected by bank 1,000,000.00
NSF customer check (350,000.00)
Service charge (50,000.00)
Adjusted book balance 4,900,000.00

3) December bank deposits 5,500,000.00

Note collected by bank in December (1,000,000.00)
Deposit intransit-November (800,000.00)
Deposits in transit- December 700,000.00
December book receipts 4,400,000.00

4) December bank disbursements 4,400,000.00

NSF check in December (350,000.00)
Setvice charge in December (50,000.00)
Outstanding checks- November (1,200,000.00)
Erroneous bank credit in November (200,000.00)
Outstanding checks- December 31 500,000.00
December book disbursements 3,100,000.00

Problem3.3
1) Bank disbursements for July 9,000,000.00
Outstanding checks- June 30 (1,400,000.00)
Outstanding checks- July 31 1,000,000.00
Book disbursements for july 8,600,000.00

2) Balance per bank- July 31 7,300,000.00

Deposits in Transit- July 31 1,200,000.00
Outstanding checks- July 31 (1,000,000.00)
Adjusted cash in bank- July 31 7,500,000.00

Problem3.4
Balance per bank statement, March 31 4,650,000.00
Bank deposits- April 5,840,000.00
Bank disbursements- April (4,970,000.00)
Balance per bank- April 30 5,520,000.00
Putstanding checks- April 30 (700,000.00)
Aadjusted cash in bank 4,820,000.00

Problem3.5
Balance per bank- November 31 1,804,000.00
December bank deposits 2,610,000.00
december bank disbursements (2,242,000.00)
Balance per bank-December 31 2,172,000.00
Outstanding checks- December 31 (250,000.00)
Adjusted cash in bank- December 31 1,922,000.00

Problem3.6

1) Checks outstanding- May 31 30,000.00

Checks recorded by book in June 2,360,000.00
Checks recorded by bank in June (2,300,000.00)
Checks outstanding- June 30 90,000.00

2) Deposits in Transit-May 31 300,000.00

Deposits recorded by book 1,800,000.00
Deposits recorded by bank- June (1,620,000.00)
Deposits in Transit- June 30 480,000.00

3) Balance per bank- June 30 1,830,000.00

Deposits in Transit- June 30 480,000.00
Outstanding checks- June 30 (90,000.00)
Adjusted bank balance 2,220,000.00

Balance per book 1,810,000.00

Note collected by bank 420,000.00
NSF check (10,000.00)
Adjusted book balance 2,220,000.00

Problem3.7

Checks and charges by bank in Novemebr 550,000.00

Service charge in November (4,000.00)
NSF check in Novemebr (20,000.00)
Checks paid by bank in November 526,000.00

Total credits to cash in all journals- November 620,000.00

Service charge in October recorded in November (2,000.00)
Checks issued by the depositor -November 618,000.00
Outstanding checks- October 31 230,000.00
Total checks to be paid by bank 848,000.00
Checks paid by bank in Novemeber (526,000.00)
Outstanding checks- November 30 322,000.00
COMPREHENSIVE PROBLEMS

Problem3.1
Balances Disbursement Balances
Nov.30 Receipts s Dec. 31
per bank statement 194,000.00 1,487,000.00 1,325,000.00 356,000.00
Outstanding checks
Nov. 30 (23,000.00) (23,000.00)
Dec. 31 40,000.00 (40,000.00)
Deposits in transit
Nov. 30 11,000.00 (11,000.00)
Dec 31 24,000.00 24,000.00
Interest on note discounted 900.00 900.00
NSF checks (4,000.00) (4,000.00)
Bank service charge (300.00) 300.00
Cancellation of check 1,400.00 (1,400.00)
Error in recordinf check no.1584 6,750.00 (6,750.00)
Cancellation of check no.1584 8,000.00 (8,000.00)
Counter check drawn by president (2,000.00) 2,000.00
Check of Chelsea charged in error (3,000.00) 3,000.00
Postdated check presented for payment (100,000.00) 100,000.00
Per book balances 182,000.00 1,496,900.00 1,248,850.00 430,050.00
(2) (3) (4)
Book Bank
Unadjusted balances 430,050.00 356,000.00
Oitstanding checks (40,000.00)
Deposits In transit (900.00) 24,000.00
Interest on note discounted (300.00)
Bank service charge 1,400.00
Cancellation of check no.1434 6,750.00
Error in recording check no,1562 8,000.00
Cancellation of chelsea charges in error (2,000.00)
Check of chelsea charged in error 3,000.00
Postdated check presented for payment (100,000.00)
adjusted balances 343,000.00 343,000.00
(5)

Problem3.2

1) Deposit in transit, Nov 30 12,500.00

Company collections in December 152,500.00
Deposits credited by bank in December (145,000.00)
 Deposit in Transit, Dec 31 20,000.00

2) Bank service charge per December bank statement 3,250.00

December bank service charges recorded in books in December (1,000.00)
Unrecorded December bank service charges 2,250.00

3) Actual company collections inDecember 152,500.00

Underfooting of December cash receiots book (2,500.00)
Book receipts in December 150,000.00

4) Outstanding checks, December 31 12,500.00

Checks paid by bank in December 130,000.00
Outstanding checks, November 30 (16,250.00)
Checks issued in December 126,250.00

5) Checks issued in December 126,250.00

Bank service charges recorded in December 2,500.00
Book disbursements in December 128,750.00

6) Book balance, December 31 37,500.00

Book disburesements in December 128,750.00
Book receipts in Decmber (150,000.00)
Book balance, November 16,250.00

Problem3.3

1) Company checks issued in December 377,632.00

Add: November bank service chrage 36.00 Book balances
Total book disbursements in December 377,668.00 Bank service charge

2) Book balance, November 30 15,698.00

Add: December book receiots 371,766.00 Overstatement of Nov. disbur
Total 387,464.00
Less: December book disbursements (377,668.00) Mutilated check (#3417)
Book balance, December 31 9,796.00 Note collected by bank
Adjusted balances
3) Outstanding checks, December 31
3408 440.00 Bank balances
3418 2,814.00 Deposits in Transit
3419 5,788.00
Total 9,042.00
Erroneous bank charge
Bank service charge
 Outstanding checks:

Adjusted balance

Problem3.4

1) Cash receipts per cash book 411,592.50

Add: Note collected by bank in November 179,537.50
Total book receipts in December 591,130.00

2) Checks written per cash book 529,792.50

Add: Bank service charge in November 1,800.00
Total book disbursements in December 531,592.50

Beginning Receipts Disbursement Ending

Balance per bank statement 267,705.00 622,770.00 545,932.50 344,542.50
Deposits in Transit
Nov 30 20,502.50 (20,502.50)
Dec 31 32,000.00 32,000.00
Outstanding checks
Nov 30 (69,295.00) (69,295.00)
Dec 31 75,280.00 (75,280.00)
Adjusted balances 218,912.50 634,267.50 551,917.50 301,262.50

Balance per books 41,175.00 591,130.00 531,592.50 100,712.50

Bank service charges
Nov (1,800.00) (1,800.00)
Dec 1,500.00 (1,500.00)
NSF Check 20,625.00 20,625.00
Collections of notes receivable
Nov 179,537.50 (179,537.50)
Dec 202,250.00 202,250.00
Adjusted balances 218,912.50 634,467.50 551,917.50 301,462.50

Problem3.5
1) Checks written in December 405,500.00
AddL November bank service charges recorded in books in Dec 2,000.00
Total book disbursements in December 407,500.00

Beginning Receipts Disbursements Ending

Balances per books 244,500.00 482,750.00 407,500.00 319,750.00
Undeposited receipts
 Nov 30 (36,000.00) 36,000.00
Dec 31 (28,750.00) (28,750.00)
Outstanding checks
Nov. 30 63,000.00 63,000.00
Dec. 31 (75,000.00) 75,000.00
Bank service charges
Nov. 30 (2,000.00) (2,000.00)
"Dec. 31 3,000.00 (3,000.00)
Balance per bank 269,500.00 490,000.00 396,500.00 363,000.00

Problem3.6

1) Book balance, November 30 637,860.00

Add: book receipts in December 306,220.00
Total 944,080.00
Less: Book disbursements in December (SQUEEZE) 367,660.00
Book balance, December 31 576,420.00

2) Bank balance, November 30 685,180.00

Add: Bank receipts, in December (SQUEEZE) 308,120.00
Total 993,300.00
Less: Bank disbursements in December 356,080.00
Bank balance, December 31 637,220.00

3) Checks Prior to december 38,000.00

Checks issued in December 36,080.00
Total outstanding checks, December 31 74,080.00

Beginning Receipts
Balance per books 637,860.00 306,220.00
Note collected by bank in December 2,060.00
Overstatement od December book disbursement
Check stopped for payment (780.00)
Bank service charge in November (60.00)
Adjusted book balances 637,800.00 307,500.00

Bank balances 685,180.00 308,120.00

Outstanding checks
Nov 30 (64,140.00)
Dec 31
Deposits in Transit
Nov 30 15,260.00 (15,260.00)
Dec 31 16,140.00
Erroneous bank charge in Nov 1,500.00 (1,500.00)
Overstatement of bank disbursement in Dec
Adjusted bank balances 637,800.00 307,500.00
Outstanding checks, December 31 40,000.00
(1)

Balances Disburseme Balance

Nov.30 Receipts nts Dec.31
Book balances 16,250.00 150,000.00 128,750.00 37,500.00
Putstanding checks
Nov. 30 16,250.00 16,250.00
 Dec. 31 (12,500.00) 12,500.00
Deposits in Transit
Nov 30 (12,500.00) 12,500.00
Dec 31 (20,000.00) (20,000.00)
Bank service charges
"Nov 30 (1,500.00) (1,500.00)
Dec 31 2,250.00 (2,250.00)
Underfooting of December book receipts 2,500.00 2,500.00
Erroneous bank service charge in December (3,750.00) (3,750.00)
Bank Balances 18,500.00 145,000.00 129,500.00 26,500.00

Beginning Receipts DisbursementEnding

Book balances 15,698.00 371,766.00 377,668.00 9,796.00
Bank service charge
Nov. 30 (36.00) (36.00)
Dec. 31 42.00 (42.00)
Overstatement of Nov. disbursement
3413 270.00 270.00
Mutilated check (#3417) 800.00 800.00
Note collected by bank 4,000.00 4,000.00
Adjusted balances 16,732.00 375,766.00 377,674.00 14,824.00
(4) (5) (6)
Bank balances 24,298.00 373,502.00 380,284.00 17,516.00
Deposits in Transit
Nov 30 3,648.00 (3,648.00)
Dec 31 5,912.00 5,912.00
Erroneous bank charge (480.00) (480.00)
Bank service charge 42.00 (42.00)
Outstanding checks:
Nov. 30 (11,214.00) (11,214.00)
Dec. 31 9,042.00 (9,042.00)
Adjusted balance 16,732.00 375,766.00 377,674.00 13,864.00
Disbursement Ending
367,660.00 576,420.00
2,060.00
(980.00) 980.00
(780.00)
(60.00)
365,840.00 579,460.00

356,080.00 637,220.00

(64,140.00)
74,080.00 (74,080.00)

16,140.00
 (180.00) 180.00
365,840.00 579,460.00