Your audit senior instructed you to prepare a four column proof of cash receipts anddisbursements for the month of December, 2005.The bank reconciliation prepared by Ringgit Company at November 30 is reproducedbelow:Unadjusted bank balance P96,800 Unadjusted book balance P58,640 Add: deposit in transit 18,000 Add: CM - Note collected 40,320Total 114,800 Total 98,960Less outstanding checks: Less: DM bank charges 160No. 276 P2,400282 7,200284 4,800285 1,600 16,000 . Adjusted bank balance P98,800 Adjusted balance P98,800The December bank statement, which has a beginning balance of P96,800, is reproducedbelow:May Bank Account Name: Ringgit Company Date Debits Credits December 01 P18,000December 02 P7,200 40,000December 04 24,000December 06 48,000December 08 400,000 CM83 December 10 40,000 DM97 December 11 56,000December 16 20,000December 18 64,000December 21 72,400December 28 36,000 80,000December 31 4,000 DM98 64,000 CM84 Totals P131,200 P842,400 DM97 – Customer’s DAIF check CM83 – Note collected by the bank DM98 – Service Charges CM84 – Account collected by the bank The company’s cash receipts and cash disbursements journals for the month of December 2005 are provided below: Cash Receipts Journal Cash Disbursements Journal Date OR No. Amount Date Check No. AmountDec. 01 415 P40,000 Dec. 01 286 P16,00005 416 48,000 03 287 24,00010 417 56,000 10 288 32,00017 418 64,000 14 289 20,00020 419 72,000 20 290 28,00030 420 80,000 23 291 36,00031 421 88,800 26 292 40,00028 293 44,000. 31 294 48,000Total P440,800 Total P304,000 6 of 11 AP-5907 The company’s Cash in Bank ledge r appears below:Cash in BankBalance P58,640 12/31/2005 CDJ P304,00012/01/2005 GJ 40,32012/10/2005 GJ ( CM83) 400,00012/31/2005 CRJ 440,800 QUESTIONS: Based on the application of the necessary audit procedures and appreciation of the abovedata, you are to provide the answers to the following:1. How much is the outstanding checks as of December 31, 2005?a. P208,000 b. P232,800 c. P216,800 d. P224,0002. How much is the adjusted book receipts for December, 2005?a. P985,200 b. P771,600 c. P913,200 d. P904,8003. How much is the adjusted book disbursements for December, 2005?a. P347,840 b. P348,000 c. P332,000 d. P339,2004. How much is the adjusted cash balance as of December 31, 2005?a. P664,000 b. P688,800 c. P680,000 d. P672,8005. How much is the cash shortage as of December 31, 2005?a. P24,240 b. P23,840 c. P15,840 d.

Your audit senior instructed you to prepare a four column proof of cash receipts anddisbursements for the month of December, 2005.The bank reconciliation prepared by Ringgit Company at November 30 is reproducedbelow:Unadjusted bank balance P96,800 Unadjusted book balance P58,640 Add: deposit in transit 18,000 Add: CM - Note collected 40,320Total 114,800 Total 98,960Less outstanding checks: Less: DM bank charges 160No. 276 P2,400282 7,200284 4,800285 1,600 16,000 . Adjusted bank balance P98,800 Adjusted balance P98,800The December bank statement, which has a beginning balance of P96,800, is reproducedbelow:May Bank Account Name: Ringgit Company Date Debits Credits December 01 P18,000December 02 P7,200 40,000December 04 24,000December 06 48,000December 08 400,000 CM83 December 10 40,000 DM97 December 11 56,000December 16 20,000December 18 64,000December 21 72,400December 28 36,000 80,000December 31 4,000 DM98 64,000 CM84 Totals P131,200 P842,400 DM97 – Customer’s DAIF check CM83 – Note collected by the bank DM98 – Service Charges CM84 – Account collected by the bank The company’s cash receipts and cash disbursements journals for the month of December 2005 are provided below: Cash Receipts Journal Cash Disbursements Journal Date OR No. Amount Date Check No. AmountDec. 01 415 P40,000 Dec. 01 286 P16,00005 416 48,000 03 287 24,00010 417 56,000 10 288 32,00017 418 64,000 14 289 20,00020 419 72,000 20 290 28,00030 420 80,000 23 291 36,00031 421 88,800 26 292 40,00028 293 44,000. 31 294 48,000Total P440,800 Total P304,000 6 of 11 AP-5907 The company’s Cash in Bank ledge r appears below:Cash in BankBalance P58,640 12/31/2005 CDJ P304,00012/01/2005 GJ 40,32012/10/2005 GJ ( CM83) 400,00012/31/2005 CRJ 440,800 QUESTIONS: Based on the application of the necessary audit procedures and appreciation of the abovedata, you are to provide the answers to the following:1. How much is the outstanding checks as of December 31, 2005?a. P208,000 b. P232,800 c. P216,800 d. P224,0002. How much is the adjusted book receipts for December, 2005?a. P985,200 b. P771,600 c. P913,200 d. P904,8003. How much is the adjusted book disbursements for December, 2005?a. P347,840 b. P348,000 c. P332,000 d. P339,2004. How much is the adjusted cash balance as of December 31, 2005?a. P664,000 b. P688,800 c. P680,000 d. P672,8005. How much is the cash shortage as of December 31, 2005?a. P24,240 b. P23,840 c. P15,840 d.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Your audit senior instructed you to prepare a four column proof of cash receipts anddisbursements for the month of December, 2005.The bank reconciliation prepared by

Ringgit Company

at November 30 is reproducedbelow:Unadjusted bank balance P96,800 Unadjusted book balance P58,640 Add: deposit in transit 18,000 Add: CM - Note collected 40,320Total 114,800 Total 98,960Less outstanding checks: Less: DM bank charges 160No. 276 P2,400282 7,200284 4,800285 1,600 16,000 . Adjusted bank balance P98,800 Adjusted balance P98,800The December bank statement, which has a beginning balance of P96,800, is reproducedbelow:May Bank Account Name: Ringgit Company

Date Debits Credits

December 01 P18,000December 02 P7,200 40,000December 04 24,000December 06 48,000December 08 400,000

CM83

December 10 40,000

DM97

December 11 56,000December 16 20,000December 18 64,000December 21 72,400December 28 36,000 80,000December 31 4,000

DM98

64,000

CM84

Totals P131,200 P842,400

DM97

–

Customer’s DAIF check

CM83

–

Note collected by the bank

DM98

–

Service Charges

CM84

–

Account collected by the bank

The company’s cash receipts and cash disbursements journals for the month of December

2005 are provided below:

Cash Receipts Journal Cash Disbursements Journal

Date OR No. Amount Date Check No. AmountDec. 01 415 P40,000 Dec. 01 286 P16,00005 416 48,000 03 287 24,00010 417 56,000 10 288 32,00017 418 64,000 14 289 20,00020 419 72,000 20 290 28,00030 420 80,000 23 291 36,00031 421 88,800 26 292 40,00028 293 44,000. 31 294 48,000Total P440,800 Total P304,000

6 of 11

AP-5907

The company’s Cash in Bank ledge

r appears below:Cash in BankBalance P58,640 12/31/2005 CDJ P304,00012/01/2005 GJ 40,32012/10/2005 GJ (

CM83)

400,00012/31/2005 CRJ 440,800

QUESTIONS:

Based on the application of the necessary audit procedures and appreciation of the abovedata, you are to provide the answers to the following:1. How much is the outstanding checks as of December 31, 2005?a. P208,000 b. P232,800 c. P216,800 d. P224,0002. How much is the adjusted book receipts for December, 2005?a. P985,200 b. P771,600 c. P913,200 d. P904,8003. How much is the adjusted book disbursements for December, 2005?a. P347,840 b. P348,000 c. P332,000 d. P339,2004. How much is the adjusted cash balance as of December 31, 2005?a. P664,000 b. P688,800 c. P680,000 d. P672,8005. How much is the cash shortage as of December 31, 2005?a. P24,240 b. P23,840 c. P15,840 d.

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