Question

What is the correct amount of cash?

1-2. The statement of financial position of Money Company on December 31, 2019 shows Cash of P330,820. The following items were found to comprise this total amount: Checking account in Metrobank, (outstanding checks as of year-end totaled P15,200) Savings account at Far East Bank Petty cash fund (including expense receipts for P250) Cash on hand (undeposited sales receipts Sinking fund cash Cash in foreign bank (in equivalent pesos) Customers' checks on hand: P105,200 30,800 1,500 4,200 35,000 65,000 Traveler's check Manager's check Short-term treasury bills 14,000 23,120 52,000 Money Company also has on hand a check payable to supplier amounting to P62,000, which has been recorded in the cash disbursements journal in December. 32

Answer 1

Calculation of correct amount of cash;

particular

closing cash balance....................................................330,820

less; account in metrobank(less outstanding check)...............105200

less:saving account at far east bank......................................30800

less:sinking fund cash.............................................................35000

less:cash in foreign bank ......................................................65000

less: customers 'check on hand ...........................................37120

less: short term treasury bills................................................52000

add:amount treated as cash disbursement...........................62000

correct amount of cash......................67700