Question

petty cash fund entries

Petty cash fund entries Instructions Chart of Accounts Journal Instructions Joumalize the entries to record the following refer to the Chart of Accounts for exact wording of account titles): Instructions A On March 1. Check is issued to establish a petty cash fund of $1,125. 3. On April the amount of cash in the polly cash fund is now $122. Checklis issued to replenish the fund, based on the following summary of petty cash receipts office supplies, $504 macellaneous selling experise, $216;miscellaneous administrative expense, $168. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1,125, record the discrepancy in the cash short and over account) Chart of Accounts CHART OF ACCOUNTS General Ledger REVENUE ASSETS 110 Cash 410 Sales

Answer 1

Journal Entries

A) March 1

Petty cash Dr 1125

To Cash 1125

( To establish a Petty cash fund)

B) April 1

Office expenses Dr 594

Miscellaneous selling expense Dr 216

Miscellaneous administrative

expense Dr 168

Cash short and over a/c Dr 25

To Cash 1003

(To replenish a Petty cash fund)

( Amount debited in the cash short & over account

= 1125 - (594+216+168+122)

= 25 )