Information pertaining grace company appears below

41. Information pertaining Grace Company appears below:
Balance per bank statement July 31 6,200,000
Balance per ledger, July 31 3,750,000
Deposit of July 30 not recorded by bank 1,400,000
Debit memo - service charges 50,000
Credit memo – collection of not by bank for Grace 1,500,000
Outstanding checks ?
An analysis of the canceled checks returned with the bank statement reveals the following:
 Check for purchase of supplies was drawn for P300,000 but was recorded as P200,000.
 The management wrote a check for traveling expenses of P500,000 while out of town. The check was not
recorded.
What is the amount of outstanding checks on July 31?
a. 4,600,000 b. 2,500,000 c. 2,800,000 d. 3,000,000
D 6.2M – (3.75M -1.4M – 50,000 + 1.5M – 0.1M – 0.5M) = 3M
42. Unison Co. had the following account balances at December 31, 2003:
Cash in banks 2,250,000
Cash on hand 125,000
Cash legally restricted for additions to plant
(expected to be disbursed in 2005) 1,000,000
Cash in banks included P600,000 of compensating balance against short-term borrowing
arrangements which is not legally restricted as to withdrawal by Unison.
On the current assets section of Unison’s December 31, 2003 balance sheet, total cash should be
13-17.

You are provided the following information by the Cordial Company for the year ended December 31, 2010.
The internal control procedures surrounding cash transactions were not adequate. Ethel Diaz, the
bookkeeper-cashier, handles cash receipts, maintains accounting records, and prepares the monthly
reconciliations of the bank account.
The bookkeeper-cashier prepared the following reconciliation at the end of the year:
Balance per bank statement P350,000
Add: Deposit in transit P175,250
Note collected by bank 15,000 190,250
Balance P540,250
Less: Outstanding checks 246,750
Balance per general ledger P293,500
In the process of your audit, you gathered the following:
a. At December 31, 2010, the bank statement and the general ledger showed balances of P350,000 and
P293,500.
b. The cut-off bank statement showed a bank charge on January 2, 2011 for P30,000 representing a correction
of an erroneous hand credit.
c. Included in the list of the outstanding checks were the following:
 A check payable to a supplier, dated December 29, 2010, in the amount of P14,750, released on
January 5, 2011
 A check representing advance payment to a supplier in the amount of P37,210, the date of which is
January 4, 2011.
d. On December 31, 2010, the company received and recorded customer’s postdated check amounting to
P50,.000.
43. The adjusted deposit in transit as at December 31, 2010.