[shamnar]

Petty cash fund for a company is 200. Cash left is 60.
Meal expense $100, Equipment $15, Cleaning Expense $5, Cash over/short $20. How do I journalize this. Where does Petty cash go? Where does cash left go? Where does expenses go? Where does cash over/ short go? I mean in the journal page. Which goes under debit column and which goes under credit column. How many entries should there be?

[morgaine300]

Hi. Since we aren't here to just do your homework problems for you, I am going to give you some simple examples instead. This is not as difficult as it seems.

First of all, unless you change the amount of your petty cash fund, you will never use the Petty Cash account in an entry. That is, you won't use it when you replenish the fund.

Let us say that your petty cash fund is $100. You have 2 vouchers that have $50 for Office Supplies and $30 for Delivery Expense. First, debit these vouchers. If you have more than one of any one thing, lump them together. (i.e. if you have 3 vouchers for Office Supplies, add them together and only debit it once.)

Then you will be writing a check to get cash from the bank to replenish the fund. This check needs to be for the amount missing from the fund. I have listed $80 worth of stuff that should be gone from my $100 fund, leaving me $20. If $20 is in there, then I write my check for $80 and no problems. However, life doesn't always work that way.

Let's say my fund only has $15 in it. I'm missing $5. But even though my receipts add up to $80, I need $85 to replenish the fund. So the check (cash) needs to be for $85. (A credit, since it's coming out of the cash account.)

But I don't equal at this point. That's because $5 is missing. And that is your Cash Short/Over account. It doesn't really have a normal balance. You just debit or credit as necessary to get the entry to balance. In this case I have $80 of debits, but $85 credit for the Cash to replenish pretty cash, so I have a debit missing. So I'll debit the Cash Short/Over account for $5.

This ends up looking like:
Dr Office Supples 50
Dr Delivery Expense 30
Dr Cash Short/Over 5
Cr Cash 85

And we come out all equal.

So debit all the accounts where the money went, credit the cash for the amount needed to replish the fund. Then debit or credit the Cash Short/Over for whatever will balance that entry.