[jackveg]

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Hello, here's the problem, I tried to work it out but getting confused.

The company established a pettty cash fund from can withdrawn from its checking account. The entries must be journalized. Here is an example:

May 1------Petty cash established at $100.

May 28-----The petty cash fund has $25 remaining and is replenished. Expenditures from the fund for July were: $40 office supplies, $20 postage, and $15 misc.

June 30-----The petty cash fund has $35 remaining and is replenished. Expenditure from the fund for June were: $30 office supplies, $25 postage, and $10 misc.

The question is: Do I Journal May and June on the same ledger or should it be separated (on another ledger)? Also, do I show the petty cash of $100 on both ledgers if it is separated?

Need emergency answer please!

I have done a similar one but not sure it should be on separate journals or one.

My answer
May 1 Dr Petty Cash $100
Cr Cash $100


May 28--dr office supplies---40
----------dr postage----------20
----------dr misc.-------------15
Cr cash------------------------------75

June 30--dr office supplies--30
-----------dr postage----------25
-----------dr misc.-------------10
Cr cash-------------------------------65

All of this is on one ledger. My other thought is to place May on and June on separate ledgers. Please confirm.
Thanks J:confused:

[mferguson]

That looks right to me. We are assuming that the replenishment is $100 each time. All cannot be done on the same entry because of the dates. Each date deserves a separate entry.

If I have learned nothing I have learned to keep dates in mind with every transaction, journal entry I make.