What to include in Cash Account?

 

Cash items:

Cash in bank – Checkbook balance
Funds – Petty cash fund, payroll fund, sinking fund
Cash on hand – Undeposited checks/undeposited coin and currency

Additions to correct the cash balance:
Undelivered Checks – Check drawn on the entity’s account to pay the entity’s creditors (suppliers).
Postdated check – as payment to creditors (accounts payable).

Deductions to correct the cash balance:
Postdated check – received from debtors (customers accounts).
Noncash items:
IOU – actually means “I Owe yoU”. May utang ako sayo in our language. Kaya if sinabing Employees IOU, it means na your employees have payables on you. Therefore, may receivable ka from them.
Bank overdraft – it should be deducted from cash and reclassified to a libility account.
Postage stamps – supplies yan, stamps nga eh. Sige try mong ipambayad ung mga stams sa tindahan.
Savings account for future plant expansion – pag ganito yung datingan, it is noncurrent investment.

Treasury bills (maturity date is Dec. 31, 2012) – kahit currently maturing yan, hindi padin sya pasado as cash kasi hindi po given ang Date of Purchase.

Credit memo from a supplier – usually, this pertains to a purchase return. And such return is a deduction to payable account.
Bond sinking fund – long-term investment to.
Petty cash vouchers – this one is so clear na dapat irecognize on a expense account.
Cash advance from customer – deferred payment yan kaya dapat irecognize as unearned revenue.
Cash advance to employees – receivables naman to, kabaligtaran lng ng nasa top.
Certificate of deposit, 6 months – sabi sa explanation kani-kanina lamang 3 months lng dapat to be recognized as cash and cash equivalents.