1. Project 1

1.18. Page 3

Training Room 5: Petty Cash

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?

 

 

Check your answer.

 

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.

  1. Open General Journal Template and save it in your Course Folder as pr1-tr5-p2a.

  2. Journalize the entry to replenish the petty-cash fund on page 19 of the general journal.

  3. 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.

  1. Open General Journal Template, and save it in your Course Folder as pr1-tr5-p2b.

  2. Journalize the entry to replenish the petty-cash fund on page 19 of the general journal.

  3. 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.