5.
Cash accountability P242,6800
Cash acoounted 98,830)
Total shotage 143,850
Shortage chargeable agalnst bank (100.000)
Shortage chargeable against the cashier P 43,850
Answer: B
PROBLEN 1-36
Computation of Cash Shortage
The JUNNEL COMPANY had weak internal controls over its cash
transactions. Facts about its cash position at November 30, 2018,
were as follows:
The cash books showed a balance of P94,508, which included
uideposiveu receipts. A credit of P500 on the bank's records did not
appear on the bookS of the company. The balance per bank statement
was P77,750. Outstanding checks were no. 8420 for P581, no. 8422
for P750, no. 8430 for P1,266, no. 8621 for P954, no.8623 for P1,034,
and no. 8632 for P726
The cashier stole all undeposited receipts in excess of P18,972 and
prepared the following reconciliation:
Balance per books, Nov. 30, 2018 P94,508
Add: Outstanding checks
8621 P 954
8623 1,034
8632 126 2.214
96,722
Less: Undeposited receipts
18.972
Balance per bank, Nov. 30, 2018 77,750
Less: Unrecorded credit
True cash, Nov. 30, 2018 500
PZZ.250
correct amount of cash that SH
What is the
1.
deposit on
November 30, 2018?
A. P23,069
C. P22,569
B. P18,972
D. P22,069
How much
was stolen by the cashier?
2 C. P4,097
A. P3,597
B. P3,097
D. PO
The cashier attempted to conceal his theft by
3. checks.
I. Not listing all outstanding shown on the
reconciliation.
checks
. Underfooting outstanding balance that shouid be deducted
the bank
I1. Adding an item to
from the book balance.
A. 1and Il only C. I and Ill only
B. II and Ill only D. I, I1, and Iili
internal
the information given, which of the following
4. Taking only cashier to steal cash and
conceal
control deficiencies allowed the
his theft?
A. The cashier is also responsible for, preparing the
reconciliation.
cashier is responsible for tracing cash
B. No one other than the
to the deposits in the bank.
receipts
C. Both A and B.
D. Neither A nor B.
30, 2018?
.What is the adjusted cash balance as of November
C. P94,008
A. P95,008
D. P87,814
B: P91,411
SOLOTION 1-36
P94,508
Cash balance per books, Nov. 30 500
Add: Bank credit
(on hand and in bank)
Adjusted cash
balance
balance:
95,008
Less: Adjusted bank
Bank balance, Nov. 30 P77,750
Less: Outstanding checks
No. 8420 P 581
8422 750
8430 1,266
8621 954
8623 1,034
8632 726 5.311
Cash that should be on hand for
72.439
deposit P22.569
Answer: C
2. Cash that should be on hand for
Cash reported
deposit (see no. 1) P22,569
Amount of theft 18,972
P3.597
Answer:A
3. The cashier
attempted to conceal his theft by:
1. Not listing ali outstanding checks.
2. Underfooting outstanding checks shown on the reconciliation.
3. Subtracting an item from the bank balance that shouid
added to book balance. be
Answer:A
The following internal control
1. The cashier is also deficiencies are noticeable
reconciliation. responsible for
preparing the
the cash
casn
2. No one other than the cashier is
receipts to the deposits in the bank. responsible for tracing cas
Answer: C
5.
Unadjusted balances Book Bank
Unrecorded credit P94,508 P77,750
Outstanding checks 500
Undeposited receipts (5,311)
18,972
CHAPTER
Corrected balances 95,008 91411
Cash shortage (amount of thefi) (3.597)
Adjusted cash balances P91411 P21.411
Answer: B
PRODLEN 1-37
Comptation of Cash Shortage
Presented below is the cash receipts book of APPLE, INC.:
CASH RECEIPTS BOOK
June 1-30, 2018
Accounts Cash Sales Net
Date Receivable Sales Discount Cash
June 1 Cash Sales P 800 P 800
10 BA P 3,200 P 64 3,136
15 BO 6,000 120 5,880
20 BE 4,800 96 4,664
20 Cash Sales 2,400 2,400
25 BU 10,800 216 10,504
26 BO 4,000 4,000
26 BE 12,000 240 11,680
30 BO 3,600 3,600
30 BA 800 800
P45.200 P3.200 P936 P47.464
The following are the company's accounts receivable subsidiary
ledgers. All the debits represent sales. The credit terms are 2%-10
days, net 30 days.
BO
BA
June 3 3,200 June 10 3,200 June 2 6,000 June 15 6,000
4 4,800 30 800 9 4,000 26 4,000
15 3,6000 30 3,600
