Petty Cash Fund: Petty cash fund the amount of money provided for day to day small expenses depending upon the level of business. All the expenses are made by paying cash; hence there is an important need to maintain control over petty cash fund. To Prepare: The Journal entry to record the Increment of the Petty Cash fund.

Question

Petty Cash with Change in Fund Balance Basque Ltd. maintains a petty cash fund with a balance of $800. On December 31, Basque's petty cash account has a balance of $60. Basque replenishes the petty cash account, as it does at the end of every month, but also decides to increase the fund balance to $1,000. Basque classifies all petty cash transactions as miscellaneous expense. Required: What journal entry is made to record this activity? For those boxes in which no entry is required

Answer 1

Question

Chapter 4, Problem 35BE

To determine

Concept Introduction:

Petty Cash Fund:

Petty cash fund the amount of money provided for day to day small expenses depending upon the level of business. All the expenses are made by paying cash; hence there is an important need to maintain control over petty cash fund.

To Prepare:

The Journal entry to record the Increment of the Petty Cash fund.

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Petty Cash with Change in Fund Balance Basque Ltd. maintains a petty cash fund with a balance of $800. On December 31, Basque's petty cash account has a balance of $60. Basque replenishes the petty cash account, as it does at the end of every month, but also decides to increase the fund balance to $1,000. Basque classifies all petty cash transactions as miscellaneous expense. Required: What journal entry is made to record this activity? For those boxes in which no entry is required

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