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    Accounting - Proof of Cash Test Bank

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    Ayesha RG
    The president of Blessed Company suspects the newly hired accountant of stealing money. An audit of the company's cash in bank accounts for December 2010 was performed. The audit found discrepancies between the bank statements and company books, including unrecorded bank charges and collections, returned checks, and recording errors. Based on the results of the audit, the adjusted cash balances and any cash shortages or discrepancies for November and December 2010 need to be determined.

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    Accounting - Proof of Cash Test Bank

    Uploaded by

    Ayesha RG
    381 views1 page
    The president of Blessed Company suspects the newly hired accountant of stealing money. An audit of the company's cash in bank accounts for December 2010 was performed. The audit found discrepancies between the bank statements and company books, including unrecorded bank charges and collections, returned checks, and recording errors. Based on the results of the audit, the adjusted cash balances and any cash shortages or discrepancies for November and December 2010 need to be determined.

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    The president of Blessed Company suspects the newly hired accountant of stealing money. An audit of the company's cash in bank accounts for December 2010 was performed. The audit found discrepancies between the bank statements and company books, including unrecorded bank charges and collections, returned checks, and recording errors. Based on the results of the audit, the adjusted cash balances and any cash shortages or discrepancies for November and December 2010 need to be determined.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    381 views1 page

    Accounting - Proof of Cash Test Bank

    Uploaded by

    Ayesha RG
    The president of Blessed Company suspects the newly hired accountant of stealing money. An audit of the company's cash in bank accounts for December 2010 was performed. The audit found discrepancies between the bank statements and company books, including unrecorded bank charges and collections, returned checks, and recording errors. Based on the results of the audit, the adjusted cash balances and any cash shortages or discrepancies for November and December 2010 need to be determined.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Mindanao State University

    College of Business Administration and Accountancy


    DEPARTMENT OF ACCOUNTANCY
    Marawi City

    COMPREHENSIVE PROBLEM
    Assignment

    Blessed Company is a very successful entity engaged in the manufacturing and selling of high
    fashion clothing. In July of 2010, the long-time and trustworthy accountant of Blessed resigned
    prompting the management to hire an inexperienced accountant for the time being.

    After three months of observing the newly hired accountant, the president of Blessed suspects
    that the accountant is stealing money from the company. To confirm his speculation, he hired
    you to audit the entity’s cash in bank accounts at year end.

    In connection with your examination, Blessed Company presented to you the following
    information regarding its cash in bank account for the month of December 2010:
     Balances per bank statements: November 30, P215,600 and December 31, P230,400.
     Balances of cash in bank account in company books: November 30, P165,450 and
    December 31, P226,800.
     Total receipts per book were P2,221,900 of which P12,100 was paid in cash to a creditor
    on December 24.
     Total charges in the bank statement during December were P2,189,700.
     Undeposited receipts were: November 30, P90,600 and December 31, P101,200.
     Outstanding checks were: November 30, P26,750 and December 31, P19,300 of which
    a check for P5,000 was certified by the bank on December 26.
     NSF checks returned, recorded as reduction of cash receipts were:
    a. Returned by bank on December and recorded also in December, P10,400.
    b. Returned by bank on December but recorded in January, P8,600.
     Collections by bank not recorded by the company were P121,500 in November and
    P116,400 in December.
     Bank service charges not entered in company books were: November 30, P7,500 and
    December 31, P4,200.
     A check for P9,500 of Bless Company was charged by the bank in company’s account.
     A check drawn for P8,400 was erroneously entered in the books as P4,800.
    Based on the above and the result of your audit, determine the answer to the following
    questions posed by Blessed Company’s president:
    1. Unadjusted disbursements per books, December: ___________________________

    2. Unadjusted receipts per bank, December: ___________________________

    3. Adjusted cash balance, November 30: ___________________________

    4. Adjusted cash balance, December 31: ___________________________

    5. Adjusted disbursements, December: ___________________________

    6. Adjusted receipts, December: ___________________________

    7. Cash shortage, December 31: ___________________________

    8. Net adjustment to cash, November 30: ___________________________

    9. Net adjustment to cash, December 31: ___________________________

    “The tragedy in life doesn’t lie in not reaching your goal.


    The tragedy lies in having no goal to reach.”
    Benjamin Mays

    Page | 1 Prepared by: MSB

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