Problem 6 The petty cash fund of Paclipan Company, which has an imprest balance of P60,000, on December 31, 2021 is composed of the following: Coins and currencies P 9,000 Petty cash vouchers: Gasoline payments Supplies Cash advances to employees 6,000 7,000 8,000 15,000 Employee's check returned by bank marked NSF Check drawn by Jackson payable to the order of the petty salary A sheet of paper with names of employees together with the contribution for a birthday gift of a co-employee in the amount of Personal check drawn by the petty cash cash custodian representing her 9,000 5,000 custodian 1,000 6. What is the correct amount of petty cash on December 31, 2021?

Problem 6 The petty cash fund of Paclipan Company, which has an imprest balance of P60,000, on December 31, 2021 is composed of the following: Coins and currencies P 9,000 Petty cash vouchers: Gasoline payments Supplies Cash advances to employees 6,000 7,000 8,000 15,000 Employee's check returned by bank marked NSF Check drawn by Jackson payable to the order of the petty salary A sheet of paper with names of employees together with the contribution for a birthday gift of a co-employee in the amount of Personal check drawn by the petty cash cash custodian representing her 9,000 5,000 custodian 1,000 6. What is the correct amount of petty cash on December 31, 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: I need help with question solution

A: Step 1: Introduction to the Bank Reconciliation:Bank reconciliation is a process of checking the…

Q: In a bank reconciliation, a bank service charge is O added to the bank balance. deducted from the…

A: Preparation of bank reconciliation statements is prepared by the management at a particular time…

Q: safe is known only by the treasurer and assistant treasurer. Each month, the bank statement is…

A: Internal Control:- It is the process in which a company puts a check on their employees for each…

Q: Explain

A: Question 1)An NSF fee stands for Non-Sufficient Funds fee. It's a penalty charged by your bank when…

Q: What is the adjusted balance on the bank reconciliation? (See image of additional info)

A: Cash balance as per bank statement 12,175 Add: Deposits in transit 1800 13,975 Less:…

Q: What are some effective procedures for handling petty cash

A: The expression 'petty cash' alludes to a reserve of money set aside to pay little, day-to-day office…

Q: Which of the following adjusts the company's balance of cash in a bank reconciliation? Multiple…

A: Bank reconciliation is the statement prepared by the entity for the purpose of adjusting the errors…

Q: A deposit in transit on last period's bank reconciliation is shown as a deposit on the bank…

A: Step 1: Introduction to the Bank Reconciliation:Bank reconciliations are completed regularly in…

Q: A firm wrote a check for $282 but the bank added $282 to the firm's account for the check. On a bank…

A: The bank reconciliation statement is a tool for financial clarity, reconciling the figures,…

Q: To establish a petty cash fund, which account is debited

A: The petty cash fund is the fund maintained by the company in order to pay for the small expenses of…

Q: Define Petty Cash.

A: Petty cash: A petty cash is a small amount of cash on hand maintained by the companies to pay the…

Q: In a bank reconciliation, a bank service charge for printing checks is: A. added to the bank…

A: Bank Reconciliation:Bank reconciliation is a method that involves comparing accounting records and…

Q: H7. What specific information would you need to begin a cash receipts forecast? Identify three…

A: Cash budget is a tool used by businesses to forecast their cash receipts and cash payments for…

Q: Solve this problem

A: The deposit in transit from the last period's bank reconciliation has now appeared on this period's…

Q: The preparation of monthly bank account reconciliations is an internal control in place to detect…

A: The given statement is True.... Bank account reconciliation is prepared to detect the difference in…

Q: :46:46 In a Bank Reconciliation, which item is deducted from the Book Balance: Multiple Choice Bank…

A: Here's a breakdown of the options:Bank Service Charges: Deducted from the Book Balance because these…

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

6. What is the correct amount of petty cash on December 31, 2021?

Problem 6
The petty cash fund of Paclipan Company, which has an imprest balance of P60,000, on
December 31, 2021 is composed of the following:
Coins and currencies
9,000
Petty cash vouchers:
Gasoline payments
Supplies
Cash advances to employees
6,000
7,000
8,000
Employee's check returned by bank marked NSF
Check drawn by Jackson payable to the order of
the petty cash custodian representing her
salary
A sheet of paper with names of employees
together with the contribution for a birthday
gift of a co-employee in the amount of
Personal check drawn by the petty cash
15,000
9,000
5,000
custodian
1,000
6. What is the correct amount of petty cash on December 31, 2021?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

19 When the petty cash fund is replenished: Multiple Choice Cash is debited. Petty Cash is credited. Petty Cash is debited. Appropriate expense and/or asset accounts are debited.
Which one of the following items requires an adjustment on the bank side of the bank reconciliation? A. interest earned B. a bank service charge C. a note collected by the bank D. deposits in transit
Q.1.4 Petty cash transactions are defined as any transaction that causes a decrease in the:(a) Cash on hand in the bank account;(b) Cash on hand in the petty cash box;(c) Cash float in the cash register;(d) None of the above.(1) Q.1.5 In“D column is used for: (a) The name of the debtor;(b) The name of the creditor;(c) The name of the contra account where applicable;(d) The name of the owner. Q.1.6 Sold goods on credit to Debtor A Jones for R15 000 (VAT exclusive) less 7.5% trade discount. Which amount will be posted to the sales account?(a) R15 000;(b) R13 875;(c) R12 509;(d) R7 500.Q.1.7 Which one (1)(a) Original credit note;(b) Original credit invoice;(c) Duplicate credit invoice;(d) Duplicate credit note.
Knott Inc. has a petty cash fund of $750. (a) Since the petty cash fund is only $750, should Knott Inc. implement controls over petty cash? (b) Whatcontrols, if any, could be used for the petty cash fund?
Petty Cash Fund Question, When it comes to making payments from the petty cash fund, why isn't there an accounting/journal entry for it? Please Explain.
If a check correctly written and paid by the bank for $512 is incorrectly recorded in the company's books for $443, how should this error be treated on the bank reconciliation?