Problem 1:

Petty Cash Fund PHP 50,000

Cash on hand 1,500,000
Cash in bank:
Metrobank 4,000,000
BDO Account no. 1 3,160,000
BDO Account no. 2 (160,000)
UCPB 4,500,000
Time deposit – BPI 2,000,000

Petty Cash Fund:

Coins / Currency 10,000
Employee vales (IOUs) 8,000
Currency in enveloped marked “collection for
charity” with name attached 6,000
Unrep. petty cash voucher / expense 6,500
Check drawn by the company payable to
petty cash cashier 20,000

Cash on hand represents the undeposit collection as of 12/31/2015

and includes the following items:

a) Customer’s check Php160,000 returned by the bank on 12/26/2015

due to insufficient fund but subsequently redeposited and
cleared by the bank on 1/3/2016
b) Customer’s check Php80,000 dated 1/2/2016 received on
12/29/2015
c) Customer’s check Php90,000 dated 6/1/2015 received on the said
date and yet to be deposited since the same has been missing
d) Postal money orders received from customers – Php100,000

Included among the checks drawn by the company against the

Metrobank and recorded in 12/2015 are the following:

a) Check written on 12/29/2015 dated 1/2/2016 delivered to payee

on 12/29/2015 – Php160,000
b) Check written and dated 12/29/2015 but delivered to payee on
1/2/2016 – Php200,000

The credit balances in the BDO Account no. 2 represents checks

drawn in excess of deposit balance. This check were still
outstanding on 12/31/2015

Savings account deposit in UCPB has been set by the BOD for
acquisition of new computer. This account is expected to be
disbursed in the next 3 months from the balance sheet date.

The time deposit for BPI was purchased on 11/1/2015 and shall be
mature on 11/1/2016

Compute for:

1. Petty cash fund – 12/31/2015

2. Petty cash fund shortage/overage
3. Cash on hand
4. Cash in bank
5. Cash and cash equivalent