UNION CHRISTIAN COLLEGE

City of San Fernando, La Union

School of Business and Sciences

Accountancy Program

MOCK BOARD EXAMINATION

SY 2019-2020

Instructions: Kindly encircle the correct letter using black or blue ball pen. Double encircling,
erasures, usage of pencil and friction pen in encircling means wrong.

1. On December 31,2019 , Roma Company reported cash of P9,950,000 which comprised the following:

Undeposited collections 600,000

Cash in bank-BDO checking account 4,000,000
Undeposited NSF check received from customer,
dated December 1,2019 150,000
Undeposited check from a customer
dated January 15,2020 250,000
Cash in bank-BDO fund for payroll 1,000,000
Cash in bank-BDO money market instrument 90 days 2,000,000
Cash in foreign bank restricted 1,500,000
Cash in bank-BDO value added tax account 450,000

Total 9,950,000

On December 31,2019 what total amount should be reported as cash and cash equivalents?

2. Love Company reported the following information in relation to cash on December 31,2019:

 Check book balance, P4,000,000

 Undeposited collections, P400,000
 A customer check amounting to P200,000 dated January 2,2020 was included in the December
31,2019 checkbook balance
 Another customer check for P500,000 deposited on December 22,2019 was included in the
checkbook balance but returned by the bank for insufficiency of fund.
This check was redeposited on December 26,2019 and cleared two days later.
 A P400,000 check payable to supplier dated and recorded on December 30,2019 was mailed on
January 16,2020.
 A petty cash fund of P50,000 compromised the following on December 31,2019:
Coins and currencies 5,000
Petty cash vouchers 40,000
Refundable deposit for
returnable containers 5,000
 50,000

 A check of P40,000 was drawn on December 31,2019 payable to Petty Cash.

1. What is the adjusted cash in bank on December 31,2019?

2. Wat total amount should be reported as cash on December 31,2019?

3. Chris Company presented the following bank reconciliation for the month of November:
Balance per bank statement, November 30 3,600,000
Add: Deposit in transit 800,000
4,400,000
Less: Outstanding checks 1,200,000
Bank credit recorded in error 200,000 1,400,000
Balance per book, November 30 3,000,000

Data per bank statement for the month of December follow:

December deposits including note collected of
P1,000,000 for Chris 5,500,000
December disbursements, including NSF customer check
P350,000 and service charge P50,000 4,400,000

All items that were outstanding on November 30 cleared through the bank in December including
the bank credit.
In addition, checks amounting to P500,000 were outstanding and deposits of P700,000 were in
transit on December 31.
1. What is the adjusted cash in bank on December 31?
2. What is the cash balance per ledger on December 31?
3. What is the amount of cash receipts per book in December?
4. What is the amount of cash disbursements per book in December?

4. Flappable Company began operations on January 1, 2016. The entity provided for doubtful
accounts based on 5% of annual credit sales in prior years. On January 1,2019, the entity changed
the method of determining the allowance for doubtful accounts using an aging schedule.
2019 2018 2017 2016
15,000,00
Credit sales 0 9,500,000 8,000,000 6,000,000
11,700,00
Collections excluding recovery 0 8,200,000 6,700,000 4,500,000
Accounts written off during year 200,000 120,000 80,000 None
Recovery of accounts written off 100,000 40,000 35,000 None

Probability of
Day accounting outstanding Amount Collection
30 days or less 3,000,000 95%
between 31 and 60 days 1,500,000 80%
between 61 and 180 days 1,200,000 75%
between 181 and one year 1,200,000 50%
over one year- to be written off 100,000 0%

1. What amount should be reported as allowance for doubtful accounts on December 31,2019?
2. What amount should be reported as doubtful accounts expense for 2019?
3. What is the net realizable value of accounts receivable on December 31,2019?

5.During the second year of operation, Shark Company found itself in financial difficulties. The entity
decided to use the accounts receivable as a means of obtaining cash to continue operations.
On July 1,2019, the entity sold P1,500,000 of accounts receivable for cash proceeds of P1,400,000.
No allowance for doubtful accounts was associated with these accounts.
On December 15,2019 the entity assigned the remainder of its accounts receivable, P5,000,000 as of
that date as collateral on a P2,500,000, 12% annual interest rate loan from Finance Company. The
entity received P2,500,000 less a 2% finance charge.

None of the assigned accounts had been collected by the end of the year. It is estimated that 10% of
accounts receivable would be uncollectible.
The entity revealed the following data on December 31,2019:
Accounts receivable, excluding factored and
assigned accounts 1,000,000
Accounts receivable- assigned 5,000,000
Accounts receivable- factored 1,500,000
Allowance for doubtful accounts before adjustment 100,000

1. What total amount was received from the financing of accounts receivable?
2. What is the net realizable value of accounts receivable on December 31,2019?
3. What amount should be recognized as doubtful accounts expense for 2019?

6. Delicate Company is a wholesale distributor of automotive replacement parts.

The entity provided the following information on December 31,2019:
Inventory on December 31 based on physical count 1,250,000
Accounts payable 1,000,000
Sales 9,000,000

A. Parts held on consignment from another entity to Delicate, the consignee amounting to P165,000
were included in the physical count on December 31,2019 and in accounts payable on December
31,2019.
B. P20,000 of parts which were purchased and paid for in December 2019, were sold in the last
week of 2019 and appropriately recorded as sales of P28,000
The parts were included in the physical count on December 31,2019 because the parts were on the
loading dock waiting to be picked up by the customer.
C. Parts in transit on December 31,2019 to customers shipped FOB shipping point on December
28,2019, amounted to P34,000. The customers received the parts on January 6,2020.
Sales of P40,000 to the customers for the parts were recorded by Delicate on January 2,2020.
D. Retailers were holding P210,000 at cost and P250,000 at retail, of goods on consignment from
Delicate, at their stores on December 31,2019.
 E. Goods were in transit from vendor to Delicate on December 31,2019/ The cost of goods was
P25,000. The goods were shipped FOB shipping point on December 29,1019.

1. What is the correct amount of inventory?

2. What is the correct amount of accounts payable?
3. What is the correct amount of sales?

7. Quarry Company a manufacturer of small tools, provided the following information for the year
ended December 31,2019:
Inventory at December 31 based on physical count 1,750,000
Accounts payable at December 31 1,200,000
Net sales 8,500,000

Additional information
A. Included in the physical count were tools billed to a customer FOB shipping point on December
31,2019. These tools had a cost of P28,000 and were billed at P35,000. The shipment was in loading
dock waiting to be picked up by the common carrier.
B. Goods were in transit from a vendor to Quarry Company on December 31,2019. The invoice cost
was P50,000 and the goods were shipped FOB shipping point on December 29,2019.
C. Work in process inventory costing P20,000 was sent to an outside processor for plating on
December 30,2019.
D. Tools returned by customers and held pending inspection in the returned goods area on
December 31,2019 and had a cost of the physical count. On January 8,2020, the tools costing
P26,000 were inspected and returned to inventory. Credit memos totaling P40,000 were issued to
the customers on the same date.
E. Tools shipped to a customer FOB shipping destination on December 26,2019 were in transit on
December 31,2019 and had a cost of P25,000. Upon notification of receipt by the customer on
January 2,2020, Quarry Company issued sales invoice for P42,000
F. Goods with an invoice cost of P30,000 received from a vendor at 5:00 PM on December 31,2019
were recorded on a receiving report dated January 2,2020. The goods were not included in the
physical count but the invoice was included in accounts payable on December 31,2019.
G. Goods received from a vendor on December 26,2019 were included in the physical count.
However, the related P60,000 vendor invoice was not included in accounts payable on December
31,2019 because the accounts payable copy of the receiving report was lost.
H. On January 3,2020 a monthly freight bill in the amount of P20,000 was received. The bill
specifically related to merchandise purchased in December 2019, one-half of which was still in the
inventory on December 31,2019.
The freight charge was not included in either the inventory or in accounts payable on December
31,2019.

1. What is the correct amount of inventory?

2. What is the correct amount of accounts payable?
3. What is the correct amount of net sales?

8. On April 30, a fire damaged the office of Amaze Company. The following balances were gathered
from the general ledger on March 31:
Accounts receivable 920,000
 Inventory-January 1 1,880,000
Accounts payable 950,000
Sales 3,600,000
Purchases 1,680,000

 An examination of the April bank statement and canceled checks revealed checks written during
the period April 1-30 as follows:
Accounts payable as of March 31 240,000
April merchandise shipments 80,000
Expenses 160,000

Deposits during the same period amounted to P440,000 which consisted of collections from customers
with the exception of P20,000 refund from a vendor for merchandise returned in April.
 Customers acknowledged indebtedness of P1,040,000 at April 30. Customers owed another
P60,000 that will never be recovered. Of acknowledged indebtedness P40,000 may prove
uncollectible.
 Correspondence with suppliers revealed unrecorded obligations at April 30, of P340,000 for
April merchandise shipment, including P100,000 for shipments in transit on that date.
 The average gross profit rate is 40$
 Inventory with a cost of P260,000 was salvaged and sold for P140,000. The balance of the
inventory was a total loss.
1. What is total amount of sales up to April 30?
2. What is the total amount of purchases up to April 30?
3. What is the inventory on April 30?
4. What is the fire loss to be recognized on April 30?

9. In conducting an audit of Remy Company for the year ended June 30,2019, the entity’s CPA observed
the physical inventory at an interim date, May 31,2019.
Inventory, July 1,2018 875,000
Physical inventory May 31,2019 950,000
Sales for 11 months ended May 31,2019 8,400,000
Sales for year ended June 30 ,2019 9,600,000
Purchases for 11 months ended May 31,2019 6,750,000
Purchases for year ended June 30,2019 8,000,000

a. Shipments received in May and included in the physical inventory

but recorded as June purchases 75,000
b. Shipments received in unsalable condition and excluded from physical
inventory. Credit memos had not been received nor had charge backs to
vendors been recorded:
Total at May 31,2019 10,000
Total at June 30,2019 (including the May unrecorded
chargebacks) 15,000
 c. Deposit made with vendor and charged to purchases in April 2019.
Product was shipped in July 2019 20,000
d. Deposit made with vendor and charged to purchases in May 2019.
Product was shipped FOB destination, on May 29,2019 and was included in
May 31,2019 physical inventory as goods in transit 55,000
e. Through the carelessness of the receiving department a June
shipment was damaged by rain. This shipment was later sold in June at the
cost of 100,000

1. What is the cost of goods sold for the month of June 2019?
2. What is the inventory on June 30 ,2019?

10. Dairy Company provided the following information for the current year:

Cash 500,000
Trade and other receivables 1,500,000
Inventories 100,000
Dairy livestock-immature 50,000
Dairy livestock- mature 400,000
Property, plant and equipment, net 1,400,000
Trade and other payables 520,000
Note payable=long term 1,500,000
Share capital 1,000,000
Retained earnings-beginning 800,000
Fair value of milk produced 600,000
Gains from change in fair value 50,000
Inventories used 140,000
Staff costs 120,000
Depreciation expense 15,000
Other operations expenses 190,000
Income tax expense 55,000

1. What is the net income for the current year?

2. What is the fair value of biological assets at year-end?