A company established a petty cash fund for minor day-to-day expenses. Following are activities related to this fund. Prepare the necessary journal entries for petty cash and even for over and short cash in petty cash fund. a-Assume that RO 1500 cheque is issued to establish a petty cash fund. b-The petty cash custodian has receipts totaling RO 1,350 and RO 150 in currency remaining in the petty cash box. The receipts consist of the following: delivery charges RO 455, RO 395 for postage, and office supplies of RO 500. The petty cash custodian submits the receipts to the accountant who records the following entry and issues a cheque for RO 1,350. c-Assume the same information above except that the coin and currency remaining in the petty cash locked box was RO 130. This amount plus the receipts for RO 1,350 equals RO 1,488 and not RO 1,500, indicating a shortage in the petty cash box. The entry at the time of reimbursement will be. d-Assume, instead, that the coin and currency in the petty cash locked box was RO 175. This amount plus the receipts for RO 1,350 equals RO 1,525 and not RO 1,500, indicating an overage in the petty cash box. The entry at the time of reimbursement will be.
A company established a petty cash fund for minor day-to-day expenses. Following are activities related to this fund. Prepare the necessary
a-Assume that RO 1500 cheque is issued to establish a petty cash fund.
b-The petty cash custodian has receipts totaling RO 1,350 and RO 150 in currency remaining in the petty cash box. The receipts consist of the following: delivery charges RO 455, RO 395 for postage, and office supplies of RO 500. The petty cash custodian submits the receipts to the accountant who records the following entry and issues a cheque for RO 1,350.
c-Assume the same information above except that the coin and currency remaining in the petty cash locked box was RO 130. This amount plus the receipts for RO 1,350 equals RO 1,488 and not RO 1,500, indicating a shortage in the petty cash box. The entry at the time of reimbursement will be.
d-Assume, instead, that the coin and currency in the petty cash locked box was RO 175. This amount plus the receipts for RO 1,350 equals RO 1,525 and not RO 1,500, indicating an overage in the petty cash box. The entry at the time of reimbursement will be.
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