Corbett Corp. set up a $500 petty cash fund on October 1, 2022. They replenish the petty cash fund at the end of each month using an imprest system. (Students: I went over what an imprest system is in the “Petty Cash” outside video). On October 31, the following is noted: Meal receipts total $200 Transportation receipts total $75 $240 of petty cash remains in the fund on October 31. The October 31 entry to replenish the petty cash fund back to a $300 balance should include a:
Corbett Corp. set up a $500 petty cash fund on October 1, 2022. They replenish the petty cash fund at the end of each month using an imprest system. (Students: I went over what an imprest system is in the “Petty Cash” outside video).
On October 31, the following is noted:
- Meal receipts total $200
- Transportation receipts total $75
- $240 of petty cash remains in the fund on October 31.
The October 31 entry to replenish the petty cash fund back to a $300 balance should include a:
Petty Cash book is a small cash book that many companies maintain to record small day-to-day expenditures of the business. Under Imprest system, a fixed amount of money is given to the petty cashier to meet petty expenses for a specific period of time, say a week or a month.
At the end of the period, petty cashier submits the details of all the expenses incurred by him. The total amount of money spent during the period is reimbursed to the petty cashier and the balance at the start of next period becomes equal to the original petty cash sum.
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