Al Shams LLC Expeditions 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. Established a RO 1,000 petty cash fund by writing a cheque to “cash,” cashing the cheque, and placing the proceeds in a petty cash box entrusted to Mr. Ahmed as custodian. At the end of the month, the petty cash fund contained remaining cash of RO 254, and receipts for RO 130 postage, RO 246 office supplies, and RO 360 gasoline for company vehicles. Mr. Ahmed is not sure why the fund is short RO 10. A cheque payable to cash in the amount of RO 746 was prepared, and the funds were placed into the box. At the end of the next month, the petty cash fund contained remaining cash of RO 70, and receipts for RO 530 postage, RO 320 office supplies, and RO 80 gasoline for company vehicles. A cheque payable to cash in the amount of RO 1,430 was prepared, and the funds were placed into the box. This amount reimburses the fund and increases its balance to RO 1,500.
Problems on petty Cash
Exercise 1
Al Shams LLC Expeditions established a petty cash fund for minor day-to-day expenses. Following are activities related to this fund. Prepare the necessary
Established a RO 1,000 petty cash fund by writing a cheque to “cash,” cashing the cheque, and placing the proceeds in a petty cash box entrusted to Mr. Ahmed as custodian.
At the end of the month, the petty cash fund contained remaining cash of RO 254, and receipts for RO 130 postage, RO 246 office supplies, and RO 360 gasoline for company vehicles. Mr. Ahmed is not sure why the fund is short RO 10. A cheque payable to cash in the amount of RO 746 was prepared, and the funds were placed into the box.
At the end of the next month, the petty cash fund contained remaining cash of RO 70, and receipts for RO 530 postage, RO 320 office supplies, and RO 80 gasoline for company vehicles. A cheque payable to cash in the amount of RO 1,430 was prepared, and the funds were placed into the box. This amount reimburses the fund and increases its balance to RO 1,500.
Step by step
Solved in 2 steps
