1. The trial balance of Strawberry Company at December 31, 2019 includes the following accounts: Petty cash fund - P15,000; Cash on hand - P190,700; Unionbank current account - P310,200; Allied Bank current account #1 - P320,000; Allied Bank current account #3 - P40,000 credit; Security Bank savings account - P150,000.

Additional information:

1. The petty cash fund consisted of the following items as of December 31, 2019:

Currency and coins, P8,500

Employees' advances, P1,800

Currency in an envelope marked "collections for charity" with employees' names attached, P2,000

Unreplenished petty cash vouchers, P2,240

Replenishment check drawn by Strawberry Company payable to the petty cashier, P2,320

2. Cash on hand includes the following items:

Customer's check for P30,000 returned by bank on December 26, 2019 due to insufficient funds, but subsequently redeposited and cleared by the bank on January 10, 2020.

Postal money orders received from customers, P18,000

Customer's check for P15,000 dated January 10, 2020 received on December 23, 2019.

3. Included among the checks drawn by Strawberry Company against the Unionbank current account and recorded in December 2019 are the following:

Check No. 2234 written and dated December 22, 2019 and delivered to payee on January 3, 2020, P25,000

Check No. 2239 written December 26, 2019 dated January 30, 2020, and delivered to payee on December 28, 2019, P43,000.

4. The credit balance in Allied Bank current account #3 represents checks drawn in excess of the deposit balance that are still outstanding at December 31, 2019. A right of offset exists in the agreement between Allied Bank and its depositors.

5. The savings account deposit in Security Bank was set aside by the Board of Directors for the acquisition of new equipment. This amount is expected to be disbursed in the next three months from December 31, 2019.

What is the total amount reported in Strawberry's December 31, 2019 statement of financial position as cash on hand and in banks?

A. P817,400

B. P814,720

C. P868,220

D. P978,220

2. Following are reconciling items in an enterprise's bank reconciliation:

I. Deposit in transit.

II. Company check for P52,500 recorded in the books for P25,500.

III. Check of another company erroneously charged by the bank in the company's account.

IV. Deposit of another company erroneously credited by the bank to the company's account.

V. Bank service charge

VI. No sufficient fund check charged by the bank

VII. Company's deposit for P97,500 recorded in the books for P79,500

Which of these adjustments would be shown as deduction from the balance per books in order to arrive at the correct cash balance?

A. II, V & VI

B. V, VI & VII

C. II, V, VI & VII

D. II, IV, V, VI & VII