Question
You are assigned to audit the cash accounts of Camil Corporation for the fiscal year ended June 30, 2020. The following is an excerpt of
You are assigned to audit the cash accounts of Camil Corporation for the fiscal year ended June 30, 2020. The following is an excerpt of the company's trial balance as of June 30, related to the company's cash accounts:
Petty cash fund, imprest balance P 120,000
Cash in bank, Metrobank 1,631,730
Audit notes:
a. You rendered a cash count on the company's petty cash fund on June 30. The custodian presented to you the following:
Currencies and coins P37,620
A disbursement check payable to the
custodian 46,800
An officer's personal check
accommodated by the fund 12,000
Manager's check marked NSF 6,000
Petty cash expense vouchers:
6/20 Transportation 4,500
6/24 Office repairs 2,700
6/27 Miscellaneous 6,300
Unused postage stamps 1,500
An enveloped marked "collections for
charity" with list of names and
corresponding amounts contributed.
There is no money inside the envelope. 7,500
b. The bank reconciliation statement for the month of May included the following information:
Balance per general ledger P 980,490
Note collected by the bank in May 375,000
Interest on the note receivable in May 37,500
Bank service charge in May (16,800)
Customer NSF check (75,000)
Adjusted balance P1,302,190
Balance per statement in May P1,402,500
Deposits in transit 167,370
Outstanding checks (295,380)
Bank charge error in May 26,700
Adjusted balance P1,302,190
The May book reconciling items were recorded in the books in June while the bank charge error in May was automatically corrected by the bank in June. The bank collected another P300,000 note receivable in June with a P30,000 interest on the company's behalf. Bank service charge for June was P24,300. The company erroneously recorded a disbursement check amounting to P168,000 as P195,000 in June. The error is yet to be corrected. The bank erroneously credited the company for P63,000 representing a deposit of Camil Corporation. The bank discovered and corrected the error in June.
Total bank credits and debits appearing in the June bank statement were at P8,011,800 and P7,325,760 respectively. Moreover, total receipts per the general ledger were at P 7,977,330.
QUESTIONS:
a. What is the petty cash shortage as of June 30, 2020?
b. How much is the June deposits in transit?
c. How much is the June outstanding checks?
d. What is the correct balance of the cash in bank account as of June 30, 2020?
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