Project 1
1. Project 1
1.18. Page 3
Training Room 5: Petty Cash
Time to Practise
Practice 1
For some practice, replenish another business’s petty cash. Open a blank General Journal Template and save it as pr1-tr5-p1.
This business has an established petty-cash fund of $250.00. The following vouchers were in the petty-cash box:
Voucher 1 Voucher 2 Voucher 3 Voucher 4 Voucher 5 |
Miscellaneous Expense Supplies Automobile Expense Jonah Wiley, Drawing Miscellaneous Expense |
$45.00 $26.00 $40.00 $75.00 $30.00 (note that you can join same accounts together) |
How much cash should there be in the petty-cash box?
There should be $250.00, minus the total of the vouchers ($216.00), in the petty-cash box, or $34.00.
Assume that the correct amount of cash is in the petty-cash box, and replenish the petty cash on page 5 of a general journal. Use April 30 of the current year to enter this transaction.
To check you work, go to Practice 1 General Journal Answer.
Practice 2
The June 20xx summary of petty-cash expenditures for Handyman Hardware is given below. The petty-cash fund was established for $250.00.
Petty-Cash Summary |
|
Supplies |
66.50 |
Automobile Expense |
86.50 |
Delivery Expense |
10.00 |
Miscellaneous Expense |
45.00 |
Postage Expense |
38.00 |
Total |
246.00 |
Part A—A Shortage in Petty Cash
The petty-cash box has $3.00 left in it on June 30, 20xx. There should be $4.00 left.
- Open General Journal Template and save it in your Course Folder as pr1-tr5-p2a.
- Journalize the entry to replenish the petty-cash fund on page 19 of the general journal.
- To check your work, go to the Practice 2 Part A General Journal answer.
Part B—An Overage in Petty Cash
Now assume the petty-cash box has $4.75 left in it on June 30, 20xx.
- Open General Journal Template, and save it in your Course Folder as pr1-tr5-p2b.
- Journalize the entry to replenish the petty-cash fund on page 19 of the general journal.
- To check your work, go to the Practice 2 Part B General Journal Answer.
Journalizing is a skill that improves with practice. Practice 3, 4, and 5 are provided here to help you improve that skill. They include journalizing daily transactions, as well as establishing and replenishing petty cash.
It is strongly recommended that you do at least one of the following three practice activities before you complete the assignments in Time to Work, which are for assessment.