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Problem 2 Deposit in Transit In your audit of the cash account of Karen Mae Company, you have ascertained the following data relative to the debits per books and Credits per bank: Book debit in February 400,000 Bank credits in February 360,000 CM for interest earned in January but taken up in the books in February CM for interest in February but taken up in the books in March 5,000 6,000 Check from customer in January amounting to P40,000 but was taken up in the books as 4,000 Check from customer in February amounting P20,000 but was taken up In the books as 4,000 Check by the company issued to supplier in January amounting to P3,000

Problem 2 Deposit in Transit In your audit of the cash account of Karen Mae Company, you have ascertained the following data relative to the debits per books and Credits per bank: Book debit in February 400,000 Bank credits in February 360,000 CM for interest earned in January but taken up in the books in February CM for interest in February but taken up in the books in March 5,000 6,000 Check from customer in January amounting to P40,000 but was taken up in the books as 4,000 Check from customer in February amounting P20,000 but was taken up In the books as 4,000 Check by the company issued to supplier in January amounting to P3,000

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
Section: Chapter Questions
Problem 60BPSB
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Problem 2 Deposit in Transit In your audit of the cash account of Karen Mae Company, you have ascertained the following data relative to the debits per books and Credits per bank: Book debit in February 400,000 Bank credits in February 360,000 CM for interest earned in January but taken up in the books in February 5,000 CM for interest in February but taken up in the books in March 6,000 Check from customer in January amounting to P40,000 but was taken up in the books as 4,000 Check from customer in February amounting P20,000 but was taken up In the books as 4,000 Check by the company issued to supplier in January amounting to P3,000 But was taken up the books as 30,000 Erroneous bank credit-February 2,500 Erroneous bank charge-January 1,000 Deposit in transit-January 31 50,000 How much is the undeposited collections at the end of February? a. P47,500 b. P31,500 c. P15,500 d. P46,500
Transcribed Image Text:Problem 2 Deposit in Transit In your audit of the cash account of Karen Mae Company, you have ascertained the following data relative to the debits per books and Credits per bank: Book debit in February 400,000 Bank credits in February 360,000 CM for interest earned in January but taken up in the books in February 5,000 CM for interest in February but taken up in the books in March 6,000 Check from customer in January amounting to P40,000 but was taken up in the books as 4,000 Check from customer in February amounting P20,000 but was taken up In the books as 4,000 Check by the company issued to supplier in January amounting to P3,000 But was taken up the books as 30,000 Erroneous bank credit-February 2,500 Erroneous bank charge-January 1,000 Deposit in transit-January 31 50,000 How much is the undeposited collections at the end of February? a. P47,500 b. P31,500 c. P15,500 d. P46,500
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