You are auditing Abra Inc.’s cash in bank for the year ended December 31, 2021. You assessed control risk over cash related cycles at the maximum level, thus you have decided to render an extensive substantive test procedure. As a result you ascertained the following information related to the company’s bank reconciliation items for two months:
You are auditing Abra Inc.’s cash in bank for the year ended December 31, 2021. You assessed control risk over cash related cycles at the maximum level, thus you have decided to render an extensive substantive test procedure. As a result you ascertained the following information related to the company’s bank reconciliation items for two months:
|
|
November 30 |
December 31 |
|
|
P82,350 |
P221,425 |
|
Cash per bank statements |
535,410 |
689,085 |
|
Undeposited collections |
41,005 |
? |
|
Outstanding checks |
138,590 |
? |
|
Bank service charges |
3,600 |
3,000 |
|
Insufficient fund check |
|
4,250 |
|
Company’s notes receivable |
|
|
The bank statement and the company’s cash records show the following totals:
Checks and debit memos per bank statement, P1,091,865
Cash receipts per cash records, P1,182,260
Cash disbursements per cash records, P1,043,185
Deposits and credit memos per bank statement, P1,245,540
The insufficient fund check was redeposited in the same month. The company recorded the receipt and the redeposit in its books.
What is the correct undeposited collections as of December 31?
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