xercise 2 Abu Nabil LLC Expeditions established a petty cash fund for minor day-to-day expenses. Following are activities related to this fund. Prepare the necessary journal entries for petty cash and even for over and short cash in petty cash fund. Assume that RO 200 cheque is issued to establish a petty cash fund. The petty cash custodian has receipts totaling RO 190 and RO 10 in coin and currency remaining in the petty cash box. The receipts consist of the following: delivery charges RO 100, RO 35 for postage, and office supplies of RO 55. The petty cash custodian submits the receipts to the accountant who records the following entry and issues a cheque for RO 190. Assume the same information above except that the coin and currency remaining in the petty cash locked box was RO 8. This amount plus the receipts for RO 190 equals RO 198 and not RO 200, indicating a shortage in the petty cash box. The entry
Problems on petty Cash
Exercise 2
Abu Nabil LLC Expeditions established a petty cash fund for minor day-to-day expenses. Following are activities related to this fund. Prepare the necessary
Assume that RO 200 cheque is issued to establish a petty cash fund.
The petty cash custodian has receipts totaling RO 190 and RO 10 in coin and currency remaining in the petty cash box. The receipts consist of the following: delivery charges RO 100, RO 35 for postage, and office supplies of RO 55. The petty cash custodian submits the receipts to the accountant who records the following entry and issues a cheque for RO 190.
Assume the same information above except that the coin and currency remaining in the petty cash locked box was RO 8. This amount plus the receipts for RO 190 equals RO 198 and not RO 200, indicating a shortage in the petty cash box. The entry at the time of reimbursement will be.
Assume, instead, that the coin and currency in the petty cash locked box was RO 14. This amount plus the receipts for RO 190 equals RO 204 and not RO 200, indicating an overage in the petty cash box. The entry at the time of reimbursement will be.
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