Auditing Quiz Audit of Cash

 

CASE 1: Blue Cheese Company, one of your audit clients, presented to your audit team it’s trial balance at the end of the current year. A summary of the cash accounts is presented as follows: Pey Cash

P10,000

Cash in bank- UCPB (checking account)

P263,000

Cash in Bank- BPI (savings account)

P350,000

Cash Cas h in Bank Bank – BDO BDO (peso (peso savi savings ngs acco account unt #1) #1)

P100,0 P100,000 00

Cash Cas h in BankBank- BDO (do (dolla llarr saving savingss accoun accountt #2)

$1,000 $1,000

The following informaon was gathered from your audit: a. The pey pey cash fund fund reported reported in the the books represe represents nts the imprest imprest balanc balance e designated designated by the the enty. Upon examinaon, you found that receipts and documents for miscellaneous general expenses amounng to P8,120 were unreplenished as of December 31, 2020. In addion, the actual currency (bills and coins) per count amounted to P1,500. b. The bank stateme statement nt from UCPB UCPB showed balanc balance e of P350,000. P350,000. This does does not include include deposit deposit in transit of P25,000 and outstanding checks of P150,000. The statement showed deposit of P35,000 (not advance yet recognized in the records)infrom one of Athe company’s customers represenng payment for company’s services rendered the future. check of amounng to P70,000 was recognized in the company’s disbursement records at P7,000. The bank statement also showed a disbursement of P10,000 which was related to a check c heck issued by an unrelated enty. c. The bank bank statement statement fro from m BPI revealed revealed a balance balance of P430,000 P430,000.. Upon inspec inspecon on of the the bank statement and the company records, there were various deposits acknowledge by the bank during the last month of the period totaling P30,000 from unknown pares which were sll to be veried by the enty. It is the enty’s pracce to require online clients to make cash deposits to this account and send scanned copy of the corresponding deposit slips for vericaon and deposits of P50,000 in the past months which were not yet reected in the enty’s records. d. The BDO accounts accounts are designa designated ted for donaons donaons and and fund-raisi fund-raising ng acvies acvies related related a building building construcon project. The closing rate for the year was $1= P45 and the average was $1= P40. 1. How much much is is the cash shorta shortage ge or o overage verage on the the pey cash fun? a. P380 o ovvera erage b. P30 ssh hortage c. P1 P1,8 ,880 80 sh shor orta tage ge d. P1 P1,8 ,880 80 ov over erag age e 2. How much much is the the adjusted adjusted balanc balance e cash in in bank – UCPB checking checking account? account? a. P225,000 b. P235,000 c. P245,000 d. P263,000

 

3. How much much is the the adjusted adjusted balanc balance e of cash cash in bank bank – BPI BPI savings savings account? account? a. P350,000 b. P400,000 c. P430,000 d. P450,000 4. How much much is the the combined combined balance balance of the BDO BDO accounts accounts (in pesos)? pesos)? a. P100,000 b. P101,000 c. P140,000 d. P145,000 5. How much much should should be reported reported as cash cash in the the statement statement of nancial nancial posi posion? on? a. b. c. d.

P656,500 P666,500 P674,620 P811,500

CASE 2: You are conducng the year-end audit of Lightning Co. for the current year. An interim audit was done in November and your team is now reviewing the transacons for the month of December. Dece mber. The following informaon was gathered from the review of cash account of Lightning Co.:

Cash account balance Bank Statement balance Deposit on Transit Outstanding checks Bank service charge for the month, not shown on company books NSF checks returned by bank, not shown on company books Bank collecons from company customers, not shown

Nov. 30 20,340 107,060 8,200 27,700 720

Dec. 31 48,540 137,820 12,880 30,100 600

4,300

8,240

72,240

80,900

on company books Addional informaon: Deposits and credit memos per bank statement Canceled ch checks a an nd de debit me memos p pe er ba bank ssttatement Cash receipts per cash book Checks wrien per cash book Determine the following as a result of your audit: 1. How much is the the unadjus unadjusted ted b book ook receipt receipt in December? December? a. P172,880 b. P181,540 c. P245,120

249,100 218,340 172,880 211,900

 

d. P253,780 2. How much much is is the unadjusted unadjusted book disburseme disbursement nt in December? December? a. P211,180 b. P211,900 c. P216,200 d. P216,920 3. How much much is is the adju adjusted sted receipt receipt in in Decemb December? er? a. P204,260 b. P215,940 c. P253,780 d. P270,180 4. How much is the adjusted adjusted disburseme disbursement nt in in December December? ? a. P204,260 b. P215,940 c. P220,740 d. 248,440 5. How much much is is the adjusted adjusted ca cash sh balance balance as if if December December 31? 31? a. P94,840 b. P120,600 c. P137,080 d. P155,040

CASE 3: In the course of the audit of Blue Whale Company’s cash in bank for the year ended December 31,2018, you ascertained the following informaon: Cash per books Cash per bank statements Undeposited collecons Outstanding checks Bank service charges Insucient fund check Company’s notes receivable collected by the bank

Nov. 30 P60,350 535,410 41,005 138,590 3,600 41,250 433,075

Dec. 31 P? 689,085 64,400 150,560 3,000 404,500

The bank statement and the company’s cash records show the following totals: Check and debit memos per bank statement Cash receipts per cash record Cash disbursements per cash records Deposits and credit memos per bank statement

P1,091,865 1,125,510 ? 1,245,540

Addional informaon: a. The insucie insreturn ucient nt fund check check was re-dep re-deposite osited d in the same same month. month. No entries entries were were made to take take up the and re-deposit.

 

b. A P70,000 P70,000 bank charge charge error error in November November was was corrected corrected by the bank bank in December December,, while a P120,000 deposit of Blue Sea Corp. was erroneously credited by the bank to the company’s account in December. c. A P13,000 P13,000 disbursemen disbursementt check was was recorded recorded in November November as P31,000 P31,000.. The error error was discovered discovered and corrected in December. d. A P200,000 P200,000 customer customer collecon collecon was was recorded recorded in the b books ooks in December December as as P20,000, P20,000, the error error was detected and corrected in December. Determine the following as a result of your audit: 1. What is the the adjusted adjusted cash balan balance ce as of Novembe Novemberr 30? a. P507,825 b. P578,935 c. P604,435 d. P605,835 2. What is the the unadjus unadjusted ted book book disbur disbursemen sementt in December? December? a. P1,103,835 b. P1,104,435 c. P1,078,935 d. P1,125,510 3. What is is the unadju unadjusted sted cash balan balance ce per book as of December December 31? a. P85,410 b. P90,350 c. P81,425 d. P87,825 4. What What is th the e adjust adjusted ed receip receipts ts as of of Decemb December er 31? 31? a. P1,058,425 b. P1,078,935 c. P1,081,425 d. P1,066,295 5. What is the the adjusted adjusted disburseme disbursement nt as of D Decembe ecemberr 31? a. P1,108,425 b. P1,111,935 c. P1,120,425 d. P1,103,835 6. What What is th the e correct correct cash cash bala balance nce a ass of Decem December ber 31? 31? a. P482,925 b. P439,185 c. P392,995 d. P497,955