The records of Rossiter Company indicate a May 31 cash in bank balance of P242,310.50, which includes undeposited receipts for May 30 and 31. The cash balance on the bank statement as of May 31 is P225,400. This balance includes a note pf P30,000.00 plus P900.00 interest collected by the bank but not recorded in the journal. Checks outstanding on May 31 were as follows: No. 421, P8,434; No. 488, P4,300; No. 522, P6,524; No. 992, P9,551.50; No. 995, P4,577; and No.996, P5,961. On May 12, the cashier resigned effective at the end of the month. Before leaving on May 31, the cashier prepared the following reconciliation: Balance per books, May 31 Add: Outstanding checks 992 P9,551.50 995 4,577.00 996 5,961.00 18,089.50 Total P260,400.00 Less: Undeposited receipts 35,000.00 Balance per bank, May 31 P225,400.00 Deduct: Unrecorded note with interest 30,900.00 True cash, May 31 P94,500.00 Subsequently, the owner of Rossiter Company discovered that the cashier had stolen all undeposited receipts in excess of the P35,000 on hand on May 31. The owner, a close family friend, has asked your help in determining the amount the former cashier has stolen. Cash shortage P52,158.00 Nil P87,158.00 P17,189.50

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.5.2C

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The records of Rossiter Company indicate a May 31 cash in bank balance of P242,310.50, which includes undeposited receipts for May 30 and 31. The cash balance on the bank statement as of May 31 is P225,400. This balance includes a note pf P30,000.00 plus P900.00 interest collected by the bank but not recorded in the journal. Checks outstanding on May 31 were as follows: No. 421, P8,434; No. 488, P4,300; No. 522, P6,524; No. 992, P9,551.50; No. 995, P4,577; and No.996, P5,961.

On May 12, the cashier resigned effective at the end of the month. Before leaving on May 31, the cashier prepared the following reconciliation:

Balance per books, May 31
Add: Outstanding checks
992                                   P9,551.50
995                                      4,577.00
996                                      5,961.00              18,089.50
Total P260,400.00
Less: Undeposited receipts      35,000.00
Balance per bank, May 31   P225,400.00
Deduct: Unrecorded note with interest 30,900.00
          True cash, May 31       P94,500.00

Subsequently, the owner of Rossiter Company discovered that the cashier had stolen all undeposited receipts in excess of the P35,000 on hand on May 31. The owner, a close family friend, has asked your help in determining the amount the former cashier has stolen.

Cash shortage

P52,158.00

Nil

P87,158.00

P17,189.50

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