Problem 9

Mary Jane is the cashier of Adlawan Corporation. AS representative of the Zarate and

Associates, CPAs, you were assigned to verify her cash on hand in the morning of January 3, 2007. You began to count at 9:00 AM in the presence of Mary Jane. In the course of your counting, you found currencies in paper bi IIS and coins together with checks, vouchers, and other items/ which are mentioned below:

Bills:	(2) P500; (8) PIOO; (12) P50; (5) P20
Coins: Checks:	p 5.00 Il loose 1.00 24 loose 0.25 5 rolls and 32 loose (50 pieces to a roll) 0.10 10 rolls and 15 loose (50 pieces to a roll) 0.05 14 rolls and 20 loose (40 pieces to a roll) Maker Payee Amount
12/22/06	Vivian, Asst. Mgr Adlawan Corp. P 6,000
12/26/06 IOUs: Date	Mary Jane/ cashier Adlawan Corp. 4,000 Maker Amount
12/20/06	Yap, Janitor P 500
12/22/06	Felix, clerk 750
12/24/06	Ablay, bookkeeper 500
PETTY CASH VOUCHERS FOR REPLENISHMENT
Date Payee Accounts Charged Accounts Charged
12/16/06 Wagan, messenger Advances to employees PI,OOO.OO
12/17/06 Maren and Co. Supplies 545.00
12/18/06 Eeman Liner Freight in 982.50
12/18/06 Posts Office Supplies 300.00
12/20/06 Alejandre, carpenter Repairs 2,950.00
12/21/06 Violan Miscellaneous expense 554.00

Your investigation also disclosed the following:

I. The balance of petty cash fund per books is P20,000.OO.

2. Cash sale of January 2, 2007 amounted to P8,650 per sales records, while cash receipts book and bank deposit slip showed that only P7,650 was deposited in the bank on January 3, 2007

3. The following employees' pay envelopes had been opened and the money removed. Each envelope was marked "Unclaimed" - Ernesto, P332.50; Secinando, P447.50.

Questions

1. The petty cash shortage ADLAWAN CORPORATION at December 2006 is:

   1. P 2,748.50 b. P 1,748.50 c. P 968.50 d. p 188.50

2. The adjusted '*tty cash bdance of ADLAWAN CORPORATION at December 31, 2006 is:

   1. P 10/950 b. P 11,950 c, P 11/730 d. P 12,730

3. The undeposited sales/collection of ADLAWAN CORPORATION at December 31, 2006 is:

Problem 10

In your year-end audit of Angela Corp., the cashier showed a cash accountability of PI, 100,000 as at December 31, 2006. The following transactions were extracted in the books of the company, in summary form:

Accounts receivable, beginning	P 275,000
Accounts receivable, end Sales (80% on credit)	385,000
Accounts written-off	25,000

Recovery of accounts written-off, included in the collection

of account receivable	15,000
Depreciation of fixed assets	150,000
Inventory, end	185,000
Inventory, beg	203,000
Cost of sales	960,000
Income tax accrued	18,500
Payment of bank loan	200,000
Subscription receivable	250,000
Subscribed capital stock	950,000
Purchases of fixed assets	320,000
Proceeds from short-term bank loan	300,000
Accounts payable, end	425,000
Accounts payable, beg.	200,000

Questions

The correct cashier's accountability at December 31, 2006 is:

a. P1,493,000 b. P1,123,00 c. P 793,000 d. P 423,000

2. ANGELA CORPORATION'S cash account at December31, 2006 is:

1. Understated by P 307,000 c. Overstated by P 693,000

Understated by P 393,000 d. Overstated by P 677,000