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Petty Cash

The document outlines transactions involving a petty cash fund. It establishes the fund at $10,000 on November 10th. On November 29th, the fund is used to pay for supplies, telephone, and postage, requiring a $5,000 replenishment. At year-end on December 31st, adjustments are made but reversed on January 2nd. On February 1st, the fund is either replenished if a reversing entry was made, or a new replenishment entry is needed if there was no reversal. The fund balance is then proposed to be decreased to $5,000.

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Fely Maata
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68 views3 pages

Petty Cash

The document outlines transactions involving a petty cash fund. It establishes the fund at $10,000 on November 10th. On November 29th, the fund is used to pay for supplies, telephone, and postage, requiring a $5,000 replenishment. At year-end on December 31st, adjustments are made but reversed on January 2nd. On February 1st, the fund is either replenished if a reversing entry was made, or a new replenishment entry is needed if there was no reversal. The fund balance is then proposed to be decreased to $5,000.

Uploaded by

Fely Maata
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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PETTY CASH FUND

2019
Petty Cash 10,000
Nov. 10 Establishments of PCF, P Cash in Bank 10,000
10,000

Nov. 29 Replenishment for Supplies 5,000


Supplies 5,000 Telephone 1,800
Telephone 1,800 Postage 1,200
Postage 1,200 Cash Short and Over 20
Cash 1,980 Cash in Bank ( 10,000 – 1980) 8,020

Dec. 31 (Year end Adjustments – Supplies 1,500


no replenishment) Postage 500
Composition: Miscellaneous 1,000
Cash 7,000 Petty Cash Fund 3,000
Supplies 1,500
Postage 500
Miscellaneous 1,000
2020
January 2 Petty Cash Fund 3,000
Adjustment is Reversed Supplies 1,500
Postage 500
Miscellaneous 1,000

Feb 1. The fund is replenished Replenishment Entry if there is reversing

Composition: Supplies 4,500


Cash 1,000 Postage 3,000
Supplies 4,500 Miscellaneous 1,500
Postage 3,000 Cash in Bank ( 10,000 -1,000) 9,000
Miscellaneous 1,500

Replenishment Entry if there is no reversing

Petty Cash Fund 3,000


Supplies ( 4,500 – 1,500) 3,000
Postage (3,000- 500) 2,500
Miscellaneous ( 1,500 – 1,000)500
Cash in Bank 9,000
If Increase our PCF to P 15,000 Petty Cash Fund 5,000
Cash in Bank 5,000

January 2 Petty Cash Fund 3,000


Adjustment is Supplies 1,500
Reversed Postage 500
Miscellaneous 1,000

If there is a reversing entry:


What if in Feb 1.
We will decrease
the balance of PCF Supplies 4,500
to P 5,000? Postage 3,000
Miscellaneous 1,500
Composition: Cash in Bank ( 5,000 -1,000) 4,000
Cash 1,000 Petty Cash Fund 5,000
Supplies 4,500
Postage 3,000
Miscellaneous
1,500

If there is NO reversing entry

Supplies ( 4,500 – 1,500) 3,000


Postage (3,000- 500) 2,500
Miscellaneous ( 1,500 – 1,000)500
Cash in Bank 4,000
Petty Cash Fund 2,000

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