Was there a cash short/over? How much? Prepare a petty cash replenishment journal entry.
I. On November 30, 2020 Amanda de la Cruz has the following relevant information concerning its bank reconciliation:
- Details of bank statement-
Balance, October 31, 2020 P308,000
Deposits 511,980
Checks cleared 541,180
DAUD check from Ocean Crustaceans 1,000
Note collected with interest of P800 16,800
Interest on Bank balance 360
Service charges 140
Balance , November 30, 2020 P394,820
- Per books –
Balance, November 1, 2020 P283,500
Deposits 514,680
Checks issued 530,000
- Additional information-
- The entity overstated one of its deposits by P200; the bank recorded it correctly.
- The bank cleared a P1,780 check as P1,870; the error has not been corrected by the bank.
- The October reconciliation yielded deposits in transit of P15,500 and outstanding checks of P40,000
Required:
- Compute the November 30, 2020 deposit in transit and outstanding checks.
- Prepare the
bank reconciliation statement for November, - Prepare the journal entries from your bank reconciliation.
II. Juan Nolasco’s check stubs indicated a balance of P457,312 on February 28. This included a record of a deposit of P92,610 mailed to the bank on February 27, but not credited to Nolasco’s account until March 1. In addition the following checks were outstanding on February 28;
Check #462 P 52,426
465 21,341
473 54,358
476 35,138
477 19,745
The bank statement showed a balance of P541,900 as at February 28. The bank included a service charge on its February 28 statement with the date of 2/27 in the amount of P410. In matching the cancelled checks and record of deposits with the stubs, it was discovered that check #456 to Office Suppliers, Inc., for P9,300 was erroneously recorded on the stub for P3,900.
Required:
- Prepare the bank reconciliation statement for February 28.
- Prepare the journal entries as a result of the bank reconciliation.
Malapan maintains a P20,000 petty cash fund. His petty cash payments record showed the following totals at the end of March.
Gasoline expenses P3,240
Mailing expense 2,750
Charitable contributions 3,500
Telephone expense 620
Representation expense 3,860
Miscellaneous expense 1,175
Malapan, withdrawal 4,000
Total P19,745
Cash on hand is P255.
Required:
- Was there a cash short/over? How much?
- Prepare a petty cash replenishment
journal entry .
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