Petty Cash Fund Entries Journalize the entries to record the following: Check No

Question

Petty Cash Fund Entries

Journalize the entries to record the following:

Check No. 245-13 is issued to establish a petty cash fund of $1,300.

The amount of cash in the petty cash fund is now $481. Check No. 271-13 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $475; miscellaneous selling expense, $197; miscellaneous administrative expense, $123.

a. Journalize the entry to establish the petty cash fund.

b. Journalize the entry to replenish the petty cash fund. For a compound transaction, if an amount box does not require an entry, leave it blank.

Explanation / Answer

a)Journalize the entry to establish the petty cash fund.

b)Journalize the entry to replenish the petty cash fund

Since the amount of the check to replenish the fund plus the balance in the fund do not equal $1,300, we record the discrepancy in the cash short and over account.

You can ignore that and make changes to entry if you disagree with treatement , entry will remain same just cash short and over account will be removed .

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