Your audit senior instructed you to prepare a four-column proof of cash receipts and disbursements for the month of December 2021. The bank reconciliation prepared by Alimall Company at November 30 is reproduced below : Unadjusted bank balance P 96,800 Unadjusted book balance P 58,640 Add: Deposit in transit 18,000 Add : CM-Note collected 40,320 Total 114,800 Total P 98,960 Less: Outstanding checks : Less : DM bank charges 160 No. 276 P 2,400 282 7,200 284 4,800 285 1,600 16,000 Adjusted Balance P 98,800 Adjusted balance P 98,800 The December bank statement which has a beginning balance of P 96,800 is reproduced below: May Bank Account Name : Alimall Company Date Debits Credits December 1 P 18,000 December 2 P 7,200 40,000 December 4 24,000 December 6 48,000 December 8 400,000 CM83 December 10 40,000 DM97 December 11 56,000 December 16 20,000 December 18 64,000 December 21 72,400 December 28 36,000 80,000 December 31 4,000 DM98 64,000 CM84 Totals P 131,200 P 842,400 DM97 : Customer’s DAIF check DM98 : Service charges CM83 : Note collected by the bank CM84 : Account collected by the bank The company’s cash receipts and cash disbursements journals for the month of December 2021 are provided below: CASH RECEIPTS JOURNAL CASH DISBURSEMENTS JOURNAL DATE OR No. Amount DATE Check No. Amount Dec 1 415 P 40,000 Dec 1 286 P 16,000 Dec 5 416 48,000 Dec 3 287 24,000 Dec 10 417 56,000 Dec 10 288 32,000 Dec 17 418 64,000 Dec 14 289 20,000 Dec 20 419 72,000 Dec 20 290 28,000 Dec 27 420 80,000 Dec 23 291 36,000 Dec 31 421 88,800 Dec 26 292 40,000 Dec 28 293 44,000 Dec 31 294 48,000 Total P 440,800 Total P 304,000 The company’s Cash in Bank ledger appears below: CASH IN BANK Balance P 58,640 12/31/21 CDJ P 304,000 12/01/21 GJ 40,320 12/10/21 GJ (CM83) 400,000 12/31/21 CRJ 440,800 Based on the application of the necessary audit procedures and appreciation of the given information, you are to provide the answers to the following : How much is the outstanding checks as of December 31, 2021? A. P 208,000 B. P 216,800 C. P 224,000 D. P 232,800
Your audit senior instructed you to prepare a four-column proof of cash receipts and disbursements for the month of December 2021.
The bank reconciliation prepared by Alimall Company at November 30 is reproduced below :
|
Unadjusted bank balance |
|
P 96,800 |
Unadjusted book balance |
P 58,640 |
|
Add: Deposit in transit |
|
18,000 |
Add : CM-Note collected |
40,320 |
|
Total |
|
114,800 |
Total |
P 98,960 |
|
Less: Outstanding checks : |
|
|
Less : DM bank charges |
160 |
|
No. 276 |
P 2,400 |
|
|
|
|
282 |
7,200 |
|
|
|
|
284 |
4,800 |
|
|
|
|
285 |
1,600 |
16,000 |
|
|
|
Adjusted Balance |
|
P 98,800 |
Adjusted balance |
P 98,800 |
The December bank statement which has a beginning balance of P 96,800 is reproduced below:
|
May Bank |
|
|
|
Account Name : Alimall Company |
|
|
|
Date |
Debits |
Credits |
|
December 1 |
|
P 18,000 |
|
December 2 |
P 7,200 |
40,000 |
|
December 4 |
24,000 |
|
|
December 6 |
|
48,000 |
|
December 8 |
|
400,000 CM83 |
|
December 10 |
40,000 DM97 |
|
|
December 11 |
|
56,000 |
|
December 16 |
20,000 |
|
|
December 18 |
|
64,000 |
|
December 21 |
|
72,400 |
|
December 28 |
36,000 |
80,000 |
|
December 31 |
4,000 DM98 |
64,000 CM84 |
|
Totals |
P 131,200 |
P 842,400 |
DM97 : Customer’s DAIF check
DM98 : Service charges
CM83 : Note collected by the bank
CM84 : Account collected by the bank
The company’s cash receipts and cash disbursements journals for the month of December 2021 are provided below:
|
CASH RECEIPTS JOURNAL |
|
|
CASH DISBURSEMENTS JOURNAL |
|
|
|
DATE |
OR No. |
Amount |
DATE |
Check No. |
Amount |
|
Dec 1 |
415 |
P 40,000 |
Dec 1 |
286 |
P 16,000 |
|
Dec 5 |
416 |
48,000 |
Dec 3 |
287 |
24,000 |
|
Dec 10 |
417 |
56,000 |
Dec 10 |
288 |
32,000 |
|
Dec 17 |
418 |
64,000 |
Dec 14 |
289 |
20,000 |
|
Dec 20 |
419 |
72,000 |
Dec 20 |
290 |
28,000 |
|
Dec 27 |
420 |
80,000 |
Dec 23 |
291 |
36,000 |
|
Dec 31 |
421 |
88,800 |
Dec 26 |
292 |
40,000 |
|
|
|
|
Dec 28 |
293 |
44,000 |
|
|
|
|
Dec 31 |
294 |
48,000 |
|
Total |
|
P 440,800 |
Total |
|
P 304,000 |
The company’s Cash in Bank ledger appears below:
|
CASH IN BANK |
|
|
|
|
|
|
|
Balance |
P 58,640 |
12/31/21 |
CDJ |
P 304,000 |
|
12/01/21 |
GJ |
40,320 |
|
|
|
|
12/10/21 |
GJ (CM83) |
400,000 |
|
|
|
|
12/31/21 |
CRJ |
440,800 |
|
|
|
Based on the application of the necessary
How much is the outstanding checks as of December 31, 2021?
A. P 208,000
B. P 216,800
C. P 224,000
D. P 232,800
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