In the course of your audit of Pig Company's cash in bank for the year ended December 31, 2023, you ascertained the following information: Particulars Cash per bank statement Deposit in transit Outstanding checks Bank service charge NSF checks Company's notes receivable collected by the bank ollected by the bar Nov 30 P803,115 65,100 72,400 700 15,200 208,310 Dec 31 P1,033,627 The bank statement and the cash record of the company showed the following: Checks and debit memos per bank statement Cash receipts per client records ? 66,320 300 16,900 309,404 P 1,787,798 2,033,130 Additional information: a. A P45,000 bank credit error in November was corrected by the bank in December, while a P22,000 check issued by Bab Corp. was erroneously charged by the bank to the Company's account in December. b. A P150,000 customer collection was recorded by the book in December at P155,000 upon collection. This was detected and corrected in December. c. The accountant recorded a receipt in November for P90,000. The correct amount of the receipt was P70,000. This was detected and corrected in December. d. The book credited a collection made in December from a customer for P20,100. The correct amount of collection is P21,000. e. There were no other items or errors affecting both bank and book. You ascertained that there were no cash shortage and overage in prior periods
In the course of your audit of Pig Company's cash in bank for the year ended December 31, 2023, you ascertained the following information: Particulars Cash per bank statement Deposit in transit Outstanding checks Bank service charge NSF checks Company's notes receivable collected by the bank ollected by the bar Nov 30 P803,115 65,100 72,400 700 15,200 208,310 Dec 31 P1,033,627 The bank statement and the cash record of the company showed the following: Checks and debit memos per bank statement Cash receipts per client records ? 66,320 300 16,900 309,404 P 1,787,798 2,033,130 Additional information: a. A P45,000 bank credit error in November was corrected by the bank in December, while a P22,000 check issued by Bab Corp. was erroneously charged by the bank to the Company's account in December. b. A P150,000 customer collection was recorded by the book in December at P155,000 upon collection. This was detected and corrected in December. c. The accountant recorded a receipt in November for P90,000. The correct amount of the receipt was P70,000. This was detected and corrected in December. d. The book credited a collection made in December from a customer for P20,100. The correct amount of collection is P21,000. e. There were no other items or errors affecting both bank and book. You ascertained that there were no cash shortage and overage in prior periods
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Questions:
2. How much is the adjusted cash balance per books as of November 30?
subpart:
2.1 How much is the correct cash balance as of December 31?
Transcribed Image Text:CASE 5: Audit of Cash and Cash equivalents (Analytical Procedure - Proof of Cash)
In the course of your audit of Pig Company's cash in bank for the year ended December 31, 2023, you
ascertained the following information:
Particulars
Cash per bank statement
Deposit in transit
Outstanding checks
Bank service charge
NSF checks
Company's notes receivable collected by the bank
Nov 30
P803,115
65,100
72,400
700
208,310
Dec 31
P1,033,627
The bank statement and the cash record of the company showed the following:
Checks and debit memos per bank statement
Cash receipts per client records
?
66,320
300
16,900
309,404
P 1,787,798
2,033, 130
Additional information:
a. A P45,000 bank credit error in November was corrected by the bank in December, while a P22,000 check
issued by Bab Corp. was erroneously charged by the bank to the Company's account in December.
b.
A P150,000 customer collection was recorded by the book in December at P155,000 upon collection. This
was detected and corrected in December.
c. The accountant recorded a receipt in November for P90,000. The correct amount of the receipt was
P70,000. This was detected and corrected in December.
d.
The book credited a collection made in December from a customer for P20,100. The correct amount of
collection is P21,000.
e. There were no other items or errors affecting both bank and book. You ascertained that there were no cash
shortage and overage in prior periods.
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