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BA 99.1:

Ex. 136

The petty cash cash fund of Php 200 for Walsh Company Company appeared appeared as follows follows on Decem 2011: C ash

Php 95 .60

Petty cash vouchers Fre ig ht i n Po sta g e Ba ll oo ns for a spe cia l occ asion Me a ls

P hp 19 .40 40.00 1 8 .00 25 .00

Instructions Instructions

1. Briefly Briefl y describe describe whe n the petty petty cash cash fund fund should should be repleni replenished. shed. Becaus Because e the hand, hand, is isthere there aaneed need to to replenish replenish the the fund fundat at year yearend end on onDecember December 31? 31?Explain Explain 2. Prepare in general general journal journal form the the entry entry to repleni sh the fund. 3. On Dece mber 31, the office office man ager gives gives instruction instructions s to increase increase the petty petty c Php 100. Make the appro priate journal journal entry. entry.

Solution Solution 136 136

1. Petty cash cash should should be replenished replenished on a perio dic basis basis or when the cash cash is low replenished replenished on on the the balance balance sheet sheet date date so that the expenses represented by th vouchers vouchers can can be be recorded recorded in in the the proper proper accounting accounting period. period. 2. Frei Freight ght-i -in... n..... .... .... .... .... .... .... .... .... .... .... .... .... .... ..... ..... .... .... .... .... .... .... .... .... .... .... .... .... .... ..... ..... .... .... .... .... .... .... .... .... .... .... .... Postage Pos tage Expens Expense e ...... ... ...... ...... ...... ...... ...... ...... ...... ...... ........ ........ ...... ...... ...... ...... ...... ...... ...... ...... ....... ....... ...... ...... ... Miscel Miscellan lan eous Expens Expense.... e....... ...... ...... ...... ...... ...... ...... ...... ...... ....... ....... ...... ...... ...... ...... ...... ...... ...... ...... ....... .... Me als Expens Expense... e...... ...... ...... ...... ...... ...... ...... ...... ...... ........ ........ ... ...... ......... ......... ......... ...... ...... ....... ....... ...... ...... ...... ..... Cash Cash Over Over an d Short Short.... ...... .... .... .... .... .... .... .... .... .... .... .... .... ..... ..... .. .... ...... .... .... .... .... .... .... .... .... .... .... .... ..... ... .... .... Cas h.. h............. ..... ... ..... ...... .. .... ............ ..... ..... ...... .. ..... ........ .........

19.4 19.40 0 40.00 40. 00 18.00 18.00 25.00 25. 00 2.00 2.00

3. Petty Petty Cash Cash ...... ......... ...... ...... ...... ...... ...... ...... ...... ........ ..... ...... ......... ...... ...... ...... ...... ...... ...... ....... ....... ...... ...... ...... ...... ...... ..... Cas h.. h............. ..... ... ..... ...... .. .... ............ ..... ..... ...... .. ..... ........ .........

100.00 100.00

Ex. 137

BA 99.1:

Solution 137

Freight-ou t ........................................................................................... Postage Expense................................................................................. Miscellaneous Expense ..................................................... .................. Cash Over and Short.................................. ......................................... Ca sh ( Php 2 00 – Php 12) .................... ... ......... .........................

60 105 20 3

Ex. 138

On October 1, 2011, Foster Company establishes an imprest petty cash fund by iss for Php 150 to Jill Nott, the custodian of the petty cash fund. On October 31, 20 submitted the following paid petty cash receipts for replenishment of the petty cash there is Php 7 cash in the fund: Freigh t-in Office Supplies Expense Entertainme nt of Clients Postage Expense

Php 25 35 60 20

Instructions

Prepare the journal entries required to establish the petty cash fund on October replenishment of the fund on October 31.

Solution 138

Oct.

1

Petty Cash........................... ............................................... Cash ........................ ........... ....................................... (To establish a petty cash fund)

150

31

Ca sh Ov er and Sh ort................................ .......................... Freig h t-in............................................................................ Offic e Supplies Expense.. ................................ ................... Entertainment Expense ......................... ............................. Postage Expense ............................................................... Cash ........................ ........... ....................................... (To record expenses for October and to replenish the petty cash fund)

3 25 35 60 20...