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PROBLEM 4
Amor Inc. has a current account in BDO. Your audit of the company’s account reveals the following:

  • Balance taken from the company’s general ledger:

Cash balance, Nov. 30, 20x1 P1,275,720

Cash balance, December 31, 20x1 1,152,840

Receipts, December 1 – 31, 20x1 612,440


Bank balance, Nov. 30, 20x1 1,370,360

Bank balance, Dec. 31, 20x1 1,274,440



Disbursements ( debits ) 712,160

  • Outstanding checks, Nov. 30, 20x1 ( P52,280 was paid

by bank in December, 20x1 128,280

  • Checks written and recorded in December, 20x1, not

included in the checks returned with the bank statement 72,160

  • Deposit in transit, Nov. 30, 20x1 30,520

  • Deposit in transit, Dec. 31, 20x1 32,280




charge made in November, P3,000

informed of the collection ) - P4,120

  • A check for P4,040 ( payable to a supplier ) was recorded in

December check register as P6,000.

  • A check for P4,480 was charged by the bank as P4,840 in December.

  • Amor issued a stop payment order to the bank in December. This pertains to a check written in December which was not received by the payee. A new check was written and recorded in the check register in December. The old check was written off by a journal entry also in December, P1,560

  • Bank service charges, Nov. 30, 20x1- P120



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