PROBLEM 1o Mr. Mando Rukot, the accountant of Square Room Corporation, who was hired on June 5, 2016, absconded on June 30 2016; apparently with a huge amount of cash. You were engaged on July 1, 2016 to ascertain the amount of money taken by the accountant. To aid you in your examination, you obtained the May bank reconciliation prepared by the previous accountant, Mr. Sipi Ey; acquired the bank statement for June; and conducted a cash count on the undeposited collections for June. Mau bank reconciliation Cash in bank balance per book, May 31 505,000 Add: Proceeds of bank loan 100,000 165,000 Outstanding checks Total 65,000 670,000 23,000 Less: Undeposited collections May bank service charge 2,000 25,000 Cash in bank balance per bank, May'31 645.000 Based on your cash count, cash totalling to P15,600 were still undeposited. June book debits total to P348,000, while book credits total to P240,000. The book debits only include cash collections for June, which is ascertained to be correct; and it does not include the bank loan credited by the bank in May. The book credits include the May bank service charge; the rest pertains to cash disbursements Based on the June bank statement, June bank credits total to P268,000, including the deposit in transit in May; while June bank debits total to P305,000, including the June bank service charge for P2,000. The rest of the bank debits pertain to cleared checks. All May outstanding checks cleared the bank in June.
PROBLEM 1o Mr. Mando Rukot, the accountant of Square Room Corporation, who was hired on June 5, 2016, absconded on June 30 2016; apparently with a huge amount of cash. You were engaged on July 1, 2016 to ascertain the amount of money taken by the accountant. To aid you in your examination, you obtained the May bank reconciliation prepared by the previous accountant, Mr. Sipi Ey; acquired the bank statement for June; and conducted a cash count on the undeposited collections for June. Mau bank reconciliation Cash in bank balance per book, May 31 505,000 Add: Proceeds of bank loan 100,000 165,000 Outstanding checks Total 65,000 670,000 23,000 Less: Undeposited collections May bank service charge 2,000 25,000 Cash in bank balance per bank, May'31 645.000 Based on your cash count, cash totalling to P15,600 were still undeposited. June book debits total to P348,000, while book credits total to P240,000. The book debits only include cash collections for June, which is ascertained to be correct; and it does not include the bank loan credited by the bank in May. The book credits include the May bank service charge; the rest pertains to cash disbursements Based on the June bank statement, June bank credits total to P268,000, including the deposit in transit in May; while June bank debits total to P305,000, including the June bank service charge for P2,000. The rest of the bank debits pertain to cleared checks. All May outstanding checks cleared the bank in June.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Audit of Cash and Cash Equivalents (Please show detailed solution as to why the text in bold are the correct answers(
Transcribed Image Text:3.
How much was taken by Mr. Mando Rukot?
А. 103,000
At what amount shall the cash in bank be presented as of June 30, 2016?
A. 711,000
В. 348,000
C. 80,000
D. 87,400
4.
В. 623,600
C. 603,000
D. 613,000
Transcribed Image Text:PROBLEM 10
Mr. Mando Rukot, the accountant of Square Room Corporation, who was hired on June 5,
2016, absconded on June 30 2016; apparently with a huge amount of cash. You were
engaged on July 1, 2016 to ascertain the amount of money taken by the accountant.
To aid you in your examination, you obtained the May bank reconciliation prepared by the
previous accountant, Mr. Sipi Ey; acquired the bank statement for June; and conducted a
cash count on the undeposited collections for June.
Mau bank reconciliation
Cash in bank balance per book, May 31
505,000
Add: Proceeds of bank loan
100,000
65,000
Outstanding checks
Total
165,000
670,000
Less: Undeposited collections
May bank service charge
23,000
2,000
25,000
Cash in bank balance per bank, May'31
645,000
Based on your cash count, cash totalling to P15,600 were still undeposited. June book debits
total to P348,000, while book credits total to P240,000. The book debits only include cash
collections for June, which is ascertained to be correct; and it does not include the bank loan
credited by the bank in May. The book credits include the May bank service charge; the rest
pertains to cash disbursements
Based on the June bank statement, June bank credits total to P268,000, including the
deposit in transit in May; while June bank debits total to P305,000, including the June bank
service charge for P2,000. The rest of the bank debits pertain to cleared checks. All May
outstanding checks cleared the bank in June.
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