Question

The December 31, 2019 trial balance of Cagayan Company includes the following accounts: Cash on hand 200,000 Petty cash ...


The December 31, 2019 trial balance of Cagayan Company includes the following accounts: Cash on hand 200,000 Petty cash fund 20,000 BPI current account 5,000,000 BDO current account 4,000,000 MBTC current account (100,000) RCBC savings account 250,000 BDO time deposit, 90 days 2,000,000 90-day Treasury bills due, January 14,2020 1,000,000  Cash on hand includes the following items: - Customer’s check for P35,000 returned by bank December 26, 2019 due to insufficient fund but subsequently redeposited and cleared by the bank on January 10, 2020. - Customer’s check for P15,000 dated January 10, 2020 received December 23, 2019.  The petty cash fund consisted of the following items as of December 31, 2019: Currency and coins 5,000 IOUs from an officer 2,000 Unreplenished PC vouchers 12,000  Included among the checks drawn by Cagayan against the BPI current account and recorded in December 2019 are the following: - Check written and dated December 23, 2019 and delivered to payee on December 31, 2019, P25,000. - Check written December 26, 2019, dated January 30, 2020, delivered to payee on December 28, 2019, P45,000.  The credit balance in MBTC current account represents checks drawn in excess of the deposit balance which are still outstanding at December 31, 2019.  The savings account of RCBC has been set aside by the Board of Directors for acquisition of new equipment. This amount is expected to be disbursed in the next 3 months from the end of the reporting period. The amount reported as “cash” on December 31, 2019 is __________

Answer

Cash in hand refers to the amount of cash a business has on a particular date. It is the current asset of the business and is included in the balance sheet of the business. In the statement of cash flows, cash inflow and outflow is reported based on various activities.

Particulars

Amount (P)

Unadjusted Cash on hand

200,000

Deduct: NSF check

(35,000)

Post-dated check received

(15,000)

 

 

Adjusted Cash on hand

150,000

 

The amount reported as “cash” on December 31, 2019 is P150,000.

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