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Oct 1 Established a RM1,000 petty cash fund by issuing cheque payment and appointed Ms. Chan to take care of the fund. 15 Ms. Chan computed a petty cash balance of RM330 and provided a list of the expenses paid for the first half month. The expenses paid were tallied to the bills consist of freight out at RM310, printing charges at RM240 and telephone bills at RM120. Replenished petty cash by cheque at RM670. 15 Increased the petty cash to RM1,200 by transferring some cash kept in the safe to fill in the petty cash. 31 At the end of the month, Ms. Chan computed a petty cash balance of RM530 and a list of expenses paid include travelling claims billed at RM485 and printing charges at RM180. Replenished petty cash by issued cheque payment at RM670.

Oct 1 Established a RM1,000 petty cash fund by issuing cheque payment and appointed Ms. Chan to take care of the fund. 15 Ms. Chan computed a petty cash balance of RM330 and provided a list of the expenses paid for the first half month. The expenses paid were tallied to the bills consist of freight out at RM310, printing charges at RM240 and telephone bills at RM120. Replenished petty cash by cheque at RM670. 15 Increased the petty cash to RM1,200 by transferring some cash kept in the safe to fill in the petty cash. 31 At the end of the month, Ms. Chan computed a petty cash balance of RM530 and a list of expenses paid include travelling claims billed at RM485 and printing charges at RM180. Replenished petty cash by issued cheque payment at RM670.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer all the four parts, it's a request, please Union Construction Sdn. Bhd.'s accounts manager, Mr. Wong decides to establish a petty cash fund starting from 1 October 2020. This decision was made by Mr. Wong as one of the internal control used to prevent cash theft. The petty cash fund transactions incurred in the month of October are as described below: Oct 1 Established a RM1,000 petty cash fund by issuing cheque payment and appointed Ms. Chan to take care of the fund. 15 Ms. Chan computed a petty cash balance of RM330 and provided a list of the expenses paid for the first half month. The expenses paid were tallied to the bills consist of freight out at RM310, printing charges at RM240 and telephone bills at RM120. Replenished petty cash by cheque at RM670. 15 Increased the petty cash to RM1,200 by transferring some cash kept in the safe to fill in the petty cash. 31 At the end of the month, Ms. Chan computed a petty cash balance of RM530 and a list of expenses paid include travelling claims billed at RM485 and printing charges at RM180. Replenished petty cash by issued cheque payment at RM670. Based on the descriptions provided, you are required to: i. Journalise the petty cash transactions and state all workings. ii. Post all the transactions to the Petty Cash account. State TWO (2) internal control procedures applied with Mr. Wong's decision to establish a petty cash fund and keep the company's cash in the safe. ii. iv. In your opinion, if Ms. Chan is also the person who records all expenses paid using a petty cash fund, will the internal control proposed by Mr. Wong is still considered strong or weak. Do provide ONE (1) reason based on your opinion.
Transcribed Image Text:Please answer all the four parts, it's a request, please Union Construction Sdn. Bhd.'s accounts manager, Mr. Wong decides to establish a petty cash fund starting from 1 October 2020. This decision was made by Mr. Wong as one of the internal control used to prevent cash theft. The petty cash fund transactions incurred in the month of October are as described below: Oct 1 Established a RM1,000 petty cash fund by issuing cheque payment and appointed Ms. Chan to take care of the fund. 15 Ms. Chan computed a petty cash balance of RM330 and provided a list of the expenses paid for the first half month. The expenses paid were tallied to the bills consist of freight out at RM310, printing charges at RM240 and telephone bills at RM120. Replenished petty cash by cheque at RM670. 15 Increased the petty cash to RM1,200 by transferring some cash kept in the safe to fill in the petty cash. 31 At the end of the month, Ms. Chan computed a petty cash balance of RM530 and a list of expenses paid include travelling claims billed at RM485 and printing charges at RM180. Replenished petty cash by issued cheque payment at RM670. Based on the descriptions provided, you are required to: i. Journalise the petty cash transactions and state all workings. ii. Post all the transactions to the Petty Cash account. State TWO (2) internal control procedures applied with Mr. Wong's decision to establish a petty cash fund and keep the company's cash in the safe. ii. iv. In your opinion, if Ms. Chan is also the person who records all expenses paid using a petty cash fund, will the internal control proposed by Mr. Wong is still considered strong or weak. Do provide ONE (1) reason based on your opinion.
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