Intermediate Accounting 1
money and other negotiable instrument that is payable in money
Cash
undeposited cash collection customer's checks
Cash on hand
demand deposit or checking account and saving deposit
Cash in bank
petty cash fund, payroll fund and dividend fund
Cash fund
highly liquid investment that acquired three months before maturity
Cash Equivalents
current liability and should not be offset against bank accounts
Bank Overdraft
form of minimum checking or demand deposit account balance
Compensating Balance
merely drawn and recorded but not given to the payee
Undelivered or Unreleased Check
recorded and already guven to the payee
Postdated Check Delivered
check unreleased by the payee within a relatively long period of time
Stale Check
money set aside to pay small expenses
Petty Cash Fund
What is the two methods of handling petty cash fund?
Imprest Fund System and Flactuating Fund System
system of control of cash which requires that all cash receipts should deposit intact
Imprest Fund System
the checks drawn ro replenish the fund do not necessarily equal the petty cash disbursement
Flactuating Fund System
current account or checking account or commercial deposit where deposits are covered by deposit slips
Demand Deposit
the deposit is a given passbook upon the initial deposits
Saving Deposit
similar to saving deposit in the sense than it is interest bearing
Time Deposit
statement which bring into agreement cash balance per book and cash balance per bank
Bank Reconciliation
What are the book reconciling items?
Credit memos, Debit memos and Errors
refer to items not representing depositd credited by the bank to the account of the depositor but not yet recorded by the depositor as cash receipts.
Credit memos
What are the bank reconciling items?
Deposit in transit, Outstanding checks and errors
refers to items not representing checks paid by bank which are charged or debited by the bank to the account of the depositor but not yet recirded by the depositor an cash disbursement.
Debit memos
checks deposited but returned by the bank because of insufficiency of fund
NSF or no sufficient fund checks
include banks charges for interest, collectiin , checkbook and penalty
Bank services charges
checks deposited but returned by the bank because of technical defects
Technically defective checks
this pertains to amount deducted from the current account of the depositor in payment for load which the depositor owed to the bank and which has already matured
Reduction of loan
collection already recorded by the depositor as cash receipts but not yet reflected on the bank statement.
Deposit in transit
check already recorded by the depositor as cash disbursement but not yet reflected on the bank statement.
Outstanding checks
one where the bank has stampted on its face word "accepted" or "certified" indicating sufficiency of fund.
Certified Checks