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Petty Cash Fund Transactions Overview

The company established a P5,000 petty cash fund in November 2022. From November to January, the petty cash custodian used the fund to pay expenses and requested replenishments, leaving a P3,260 cash balance as of December 31 without replenishment. In January, additional expenses were paid and the fund was replenished by P3,000.

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1K views2 pages

Petty Cash Fund Transactions Overview

The company established a P5,000 petty cash fund in November 2022. From November to January, the petty cash custodian used the fund to pay expenses and requested replenishments, leaving a P3,260 cash balance as of December 31 without replenishment. In January, additional expenses were paid and the fund was replenished by P3,000.

Uploaded by

gonzaleskyla277
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

Class Exercise: Petty Cash Fund

Empleo 1-7. To safeguard the company's cash balance, the Jessie Company established an Imprest petty
cash fund in November 2022. From November 2022 through January 2023, the company completed the
following transactions related to petty cash.

Nov 20, 2022 The company established an Imprest petty cash fund amounting to P5,000 and
issued a check payable to the petty cash custodian.

Nov 20 – Dec 15 The petty cash custodian paid the following from petty cash fund, all supported by
properly approved petty cash vouchers:
Transportation P1,500
Representation 1,200
Freight for merchandise purchased 1,300
Computer repairs 920
Dec 16 The petty cash custodian submitted the above paid petty cash vouchers to request
for replenishment of the fund. A check amounting to P4,920 was issued to the petty
cash custodian.

Dec 16-31 The petty cash custodian paid the following from petty cash fund.
Transportation P 340
Office supplies 1,400
Dec 31 A count of the petty cash fund revealed the following composition:
Bills and coins P3,260
Paid petty cash vouchers for
Transportation 340
Office supplies 1,400
The fund was not replenished on this date.
Jan 1-8, 2023 The petty cash custodian paid the following:
Representation P1,800
Office supplies 1,300
Transportation 120
Jan 9 The petty cash custodian submitted the petty cash vouchers evidencing payments
from December 16 through January 8. A check was issued to the petty cash fund
to replenish and increase its balance by P3,000.
REQUIRED:
Prepare journal entries for the given transactions. Include any appropriate adjusting entries on
December 31, 2022, the end of the company's reporting period, and reversing entries on January 1,
2023.

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