Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system: Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund. Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund. Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund. Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account. Requirement-1: To prepare: The Journal entries for the establishment and replenishment of the petty cash fund

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Answer 1

Question

Chapter 8, Problem 4QS

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment of the petty cash fund

To determine

Requirement-2:

To identify: Two events in which petty cash account is credited in a journal entry

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Answer 2

Question

Chapter 8, Problem 4QS

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment of the petty cash fund

To determine

Requirement-2:

To identify: Two events in which petty cash account is credited in a journal entry

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Answer 3

Question

Chapter 8, Problem 4QS

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment of the petty cash fund

To determine

Requirement-2:

To identify: Two events in which petty cash account is credited in a journal entry

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 4QS

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment of the petty cash fund

To determine

Requirement-2:

To identify: Two events in which petty cash account is credited in a journal entry

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 4QS

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment of the petty cash fund

To determine

Requirement-2:

To identify: Two events in which petty cash account is credited in a journal entry

Answer 6

Chapter 8, Problem 4QS

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment of the petty cash fund

Answer 7

Chapter 8, Problem 4QS

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment of the petty cash fund

Answer 8

To determine

Requirement-2:

To identify: Two events in which petty cash account is credited in a journal entry

Answer 9

To determine

Requirement-2:

To identify: Two events in which petty cash account is credited in a journal entry

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 8 - Prob. 1DQ Ch. 8 - Prob. 2DQ Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ Ch. 8 - Prob. 6DQ Ch. 8 - Prob. 7DQ Ch. 8 - Prob. 8DQ Ch. 8 - Prob. 9DQ Ch. 8 - Prob. 10DQ

Concept explainers

Requirement-2:

To identify: Two events in which petty cash account is credited in a journal entry

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Chapter 8 Solutions

Concept explainers

Requirement-2: To identify: Two events in which petty cash account is credited in a journal entry

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Chapter 8 Solutions

Requirement-2:

To identify: Two events in which petty cash account is credited in a journal entry