compute for adjusted book balance as on november 30 , adjusted bank receipts for december ; adjusted bank disbursements for DecemberPlease show complete solutions. You are examining the records of Shala Company where internal control is identified tobe weak. Part of your audit includes reconciliation of cash shortage for December2021. You have determined that Shala's cash reconciliation as of November 30, 2021is correct. The following information is available to you:Shala's bank reconciliation, November 2021Cash per general LedgerLess: Cash on handLess: Bank Service ChargeAdd: Outstanding ChecksBalance per BankCash receipts is summarized weekly. The cash receipts book for December is showbelow:Dec1815222981012Balance from November 30Received on accountsReceived on accountsReceived on accountsReceived on accountsThe cash payments record for December shows the following details:Dec1 November Service Charge3519223131526,34842,178484,1701,800482,370198,200680,570ChecksChecksChecksChecksChecksChecksChecksChecksBalance526,3485,154,9605,489,512931,9641,177,37013,060,1541,8001,047,300729,0423,278,9783,174,684969,778724,566738,4181,531,540862,24813,060,154s perCash on hand on December 31 amounted to P 20,000. The transactionDecember bank statement, which are correctly recorded by the bank, shows thatdeposits amounted to P12,574,184, checks paid amounted to P11,590,406, servicecharge for the month was P2,000 and a charge of P20,000 was made against theaccount because of the return unpaid of customer's check. The service charge and thereturned check were not recorded in Shala's books. The total outstanding checks as ofDecember 31 was found to be P822,100

Please see answer below. Bank Receipts Disbursement Bank Unadjusted…

Answered: compute for adjusted book balance as on…

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash And Marketable Securities

Section: Chapter Questions

Problem 32MCQ

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compute for adjusted book balance as on november 30 , adjusted bank receipts for december ; adjusted bank disbursements for December Please show complete solutions.

You are examining the records of Shala Company where internal control is identified to
be weak. Part of your audit includes reconciliation of cash shortage for December
2021. You have determined that Shala's cash reconciliation as of November 30, 2021
is correct. The following information is available to you:
Shala's bank reconciliation, November 2021
Cash per general Ledger
Less: Cash on hand
Less: Bank Service Charge
Add: Outstanding Checks
Balance per Bank
Cash receipts is summarized weekly. The cash receipts book for December is show
below:
Dec
1
8
15
22
29
8
10
12
Balance from November 30
Received on accounts
Received on accounts
Received on accounts
Received on accounts
The cash payments record for December shows the following details:
Dec
1 November Service Charge
3
5
19
22
31
31
526,348
42,178
484,170
1,800
482,370
198,200
680,570
Checks
Checks
Checks
Checks
Checks
Checks
Checks
Checks
Balance
526,348
5,154,960
5,489,512
931,964
1,177,370
13,060,154
1,800
1,047,300
729,042
3,278,978
3,174,684
969,778
724,566
738,418
1,531,540
862,248
13,060,154
s per
Cash on hand on December 31 amounted to P 20,000. The transaction
December bank statement, which are correctly recorded by the bank, shows that
deposits amounted to P12,574,184, checks paid amounted to P11,590,406, service
charge for the month was P2,000 and a charge of P20,000 was made against the
account because of the return unpaid of customer's check. The service charge and the
returned check were not recorded in Shala's books. The total outstanding checks as of
December 31 was found to be P822,100

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