Hello, everyone.
The finals are coming up in two weeks and there is one assignment I'm not sure if I did it right. Would be awsome if anyone could help me.


A company established a petty cash fund of $100 on August 1. On August 12, the petty cash fund was replenished when there was $16 remaining and there were petty cash receipts for office supplies $27, transportation-in on inventory purchased $32, and postage @22. On August 23, the petty cash fund was increased to @125 in total Record the transactions in general journal form.

Thank you in advance, alex

We will tell you if you did it right if you will post your answers.

I'm pretty sure, that I did it wrong.
I can show that I tried it and I am still trying to do it

Petty Cash 100
Cash 100
Office supplies 27
Transpot... 32
Postrage 22
How do I record the 16 into the replenished funds?
What do I do with the 125$ increase...
I hope this is a start, thanks.

Quote:

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Originally Posted by alexanderneut

im pretty sure, that i did it wrong.
I can show that I tried it and I am still trying to do it

Petty Cash 100
Cash 100
office supplies 27
Transpot... 32
Postrage 22
how do I record the 16 into the replenished funds?
what do i do with the 125$ increase...
i hope this is a start, thanks.

---

You need to separate your entries, and also be sure to put Dr & Cr on them, because unless you find a way to make columns, we can't tell.

The entry to set it up is correct.

The entry to replenish the fund is a start. The transportation could easily go to Merchandise Inventory, depending on what method you learned when you did merchandising. And that I can't tell you.

You don't do anything with the 16. That is still left in the fund and stays there. But you need to replenish it to get it back up to the $100 it's supposed to be. The account says there's 100 in there, but there's only 16 in there -- so you pull it out of the checking account in an amount necessary to get it back to 100. How much is that?

But that won't equal your receipts. We use an account called Cash Short & Over whenever there's a cash fund that doesn't come out balancing. You just debit or credit it as needed to make the entry balance.

So you charge the receipts as stated in the problem (which technically should be debits), then what comes out of cash (checking acct) to replenish has to be an amount equal to what's missing from the fund. i.e. how much cash is needed to get the fund back up to full amount. When the two sides don't balance, use Cash Short & Over to balance it.

As for the $125 -- it's increased to $125, not putting $125 into it. There's already $100 in the petty cash fund. How much more needs to go in to get a new fund with $125? And it's the same entry you started with -- because you're doing the same thing.

Hi.. I have an answer to your problem..
I hope this is the correct one..

1. Petty cash 100
Cash in Bank 100


2. Office supplies 27
Transportation In 32
Postage 22
Cash short and over 3
Cash in Bank 84

3. Petty cash 25
Cash in Bank 25

Hi.. I have an answer to your problem..
I hope this is the correct one..

1. dr.Petty cash 100
cr.Cash in Bank 100


2. dr.Office supplies 27
Transportation In 32
Postage 22
Cash short and over 3
cr.Cash in Bank 84

3. dr.Petty cash 25
cr.Cash in Bank 25

Hi, I have an answer, hop I get it right...

1. DR. Petty cash 100
CR. Cash 100
2. DR. office Supplies 27
DR. Merchandise Invty. 32
DR. Postage 22
DR. Cash short and over 3
CR. Cash 84
3. DR. Petty cash 25
CR. Cash 25

Office Supplies should be Office Supplies Expense, Merchandise should be Transportation-in, and your Postage should be Postage Expense or other appropriate Expense(Misc Expense).