Palmona Company establishes a $220 petty cash fund on January 1. On January 8, the fund shows $129 in cash along with receipts for the following expenditures: postage, $39; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $28. Palmona uses the perpetual system in accounting for merchandise inventory. 1. Prepare the entry to establish the fund on January 1. 2. Prepare the entry to reimburse the fund on January 8 under two separate situations: a. To reimburse the fund. b. To reimburse the fund and increase it to $270. Hint. Make two entries. View transaction list Journal entry worksheet < 1 2 3 Record the reimbursement of the petty cash fund. Note: Enter debits before credits. 4 Date January 08 Postage expense General Journal Merchandise inventory Delivery expense Miscellaneous expenses Cash Debit 39 Credit >

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Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.