1. The cash account of the Mapagkumbaba Inc.

as of December 31, 2017 consists of the following:

On deposit in current account with Real Bank P 900,000
Cash collection not yet deposited to the bank 350,000
A customer’s check returned by the bank for insufficient Fund 150,000
A check drawn by the Vice-President of the Corporation
dated January 15, 2013 70,000
A check drawn by a supplier dated December 28, 2017 for
goods returned by the Corporation 60,000
A check dated May 31,2017 drawn by the Corporation
against the Piggy Bank in payment of customs duties.
Since the importation did not materialize, the check was
returned by the customs broker. This check was an
outstanding check in the reconciliation of the Piggy
Bank account 410,000
Petty Cash fund of which P5,000 is in currency; P3,600 in
form of employees’ I.O.U. s; and P1,400 is supported by
approved petty cash vouchers for expenses all dated
prior to closing of the books on December 31, 2017 10,000
Total P1,950,000
Less: Overdraft with Piggy Bank secured by a Chattel ( 300,000)
Balance per ledger P1,650,000
At what amount will the account “Cash” appear on the December 31, 2017 balance sheet?
a. P1,425,000 b. P1,495,000 c. P1,315,000 d. P1,725,000

2. In the course of your audit of the Mabait Corporation, its controller is attempting to determine the amount of cash to be reported on
its December 31, 2017 balance sheet. The following information is provided:
a. Commercial savings account of P1,200,000 and a commercial checking account balance of P1,800,000 are held at PS Bank.
b. Travel advances of P360,000 for executive travel for the first quarter of the next year (employee to reimburse through salary
deduction).
c. A separate cash fund in the amount of P3,000,000 is restricted for the retirement of a long term debt.
d. Petty cash fund of P10,000.
e. An I.O.U. from a company officer in the amount of P40,000.
f. A bank overdraft of P250,000 has occurred at one of the banks the company uses to deposit its time, the
cash receipts. At the present company has no deposits at this bank.
g. The company has two certificates of deposit, each totaling P1,000,000. These certificates of
deposit have maturity of 120 days.
h. Las Conde has received a check dated January 2, 2013 in the amount of P150,000.
i. Las Conde has agreed to maintain a cash balance of P200,000 at all times at PS Bank to ensure
future credit availability.
j. Currency and coin on hand amounted to P15,000.

Based on the above and the result of your audit, how much will be reported as cash and cash equivalent at December 31, 2017?
a. P2,075,000 b. P3,025,000 c. P2,825,000 d. P5,025,000

3. You noted the following composition of Maragondon Company’s “cash account” as of December 31, 2017 in connection with your
audit:
Demand deposit account P2,000,000
Time deposit – 30 days 1,000,000
NSF check of customer 40,000
Money market placement (due June 30, 2013) 1,500,000
Savings deposit in a closed bank 100,000
IOU from employee 20,000
Pension fund 3,000,000
Petty cash fund 10,000
Customer’s check dated January 1, 2013 50,000
Customer’s check outstanding for 18 months 40,000
Total P7,760,000
Additional information follows:
a) Check of P200,000 in payment of accounts payable was recorded on December 31, 2017 but mailed to suppliers on January 5,
2013.
b) Check of P100,000 dated January 15, 2013 in payment of accounts payable was recorded and mailed on December 31, 2017.
c) The company uses the calendar year. The cash receipts journal was held open until January 15, 2013, during which time P400,000
was collected and recorded on December 31, 2017.
The cash and cash equivalents to be shown on the December 31, 2017 balance sheet is
a. P3,310,000 b. 1,910,000 c. P2,910,000 d. P4,410,000
4. Emily Company provided the bank statement for the month of December which included the following information:
Ending balance, December 31 2,800,000
Bank service charge for December 12,000
Interest paid by bank to Emily Company for December 10,000

In comparing the bank statement to its own cash records, the entity found the following:
Deposits made but not yet recorded by the bank 350,000
Checks written and mailed but not yet recorded by the bank 650,000

In addition, the entity discovered that it had drawn and erroneously recorded a check for P46,000 that should have been recorded for
P64,000.
What is the cash balance per ledger on December 31?
a. 2,500,000 b. 2,800,000 c. 2,520,000 d. 2,540,000

5. The bank statement of Maloko Corporation for April, 2013 showed an ending balance of P169,263. Deposit in transit on April 30
was P18,200. Outstanding checks as of April 30 were P59,435. During the month of April, the bank charged back NSF checks in the
amount of P3,435 of which P1,835 had been redeposited by April 30. The company made no entry for the return and for the redeposit
of the checks.
On April 23, the bank charged Maloko Corporation’s account for a P2,200 item which should have been charged against the account
of Maloka Corporation; the error was not detected by the bank. During April, the proceeds from notes collected by the bank for
Maloko Corporation were P7,548 and bank charges for this service were P180.
What is the unadjusted book balance for “Cash” of Maloko Corporation at April 30, 2013?
a. 132,008 b. 126,295 c. 124,460 d. 124,310

6. On June 30, 2013, the bank statement of Bongangbongga Company had an ending balance of P3,735,000. The following data were
assembled on the course of reconciling the bank balance:
* The bank erroneously credited Bongangbongga Company for P21,000 on June 22
* During the month, the bank charged back NSF checks amounting to P23,000 of which P8,000 had been redeposited by June 25
* Collection for June 30 totaling P103,000 was deposited the following month
* Checks outstanding on June 30 amounted to P302,000
* Note collected by the bank for Bongangbongga Company was P80,000 and the corresponding bank charge was P5,000.
What is the unadjusted cash in bank per ledger on June 30, 2013?
a. 3,515,000 b. 3,557,000 c. 3,455,000 d. 3,497,000