Training Room 5: Petty Cash

 

 

Practice 3


  1. Open General Journal Template, and save it in your Course Folder as pr1-tr5-p3.
  1. Using the account titles from the chart of accounts below, journalize the following transactions on page 2 of a general journal.


    Microsoft product screen shot(s) reprinted with permission from Microsoft Corporation.

These transactions are for July of the current year. The numbers in Column 1 refer to the day of the month.

 

1

Established a petty-cash fund, $200.00

5

Received $3000 for Advertising Sales, Receipt #21

6

Paid $1500 to Accounts Payable, Cheque #13

7

Received $2500 for Advertising Sales, Receipt #22

7

Customer charged Advertising Sales, $500.00, Invoice #5

10

Paid $850 to fix the equipment, Cheque #14

16

Received $1000 from Accounts Receivable, Receipt #23

21

Sold old studio equipment for $20 000.00, Receipt #24

25

Paid $250.00 to the bank, Cheque #15

27

Bought new studio equipment for $50 000, Receipt #25

29

Received Advertising Sales, $20 000, Receipt #26

31

Replenished the petty-cash fund. There was $75.00 cash in the petty-cash box.

 

Use the following vouchers for the month:

  • Withdrew $50.00 from petty cash to fix some equipment, Voucher #42
  • Withdrew $73.00 from petty-cash box for personal use, Voucher #43

Hint: Cash plus the vouchers should equal the amount established in petty cash. If there is less cash, then you must do a Cash Short and Over debit. If there is more cash, then you must do a Cash Short and Over credit.

 

Think through these questions: How much money should be in petty cash? How much would you have to put into petty cash to replenish it to the established amount?


 

To check your work, go to CHOO T.V. General Journal Answer.

 

Continue to another practice when you have finished, or proceed to Time to Work if you are confident about journalizing.