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    Berjamin, Eric Brian - BSA - IA - Act (Journal)

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    Eric Berjamin
    Mac Mac Duds Co. established a P20,000 petty cash fund on September 1. On September 15, the fund was replenished with a P10,600 check after expenses were incurred. On September 30, a count found P16,900 in cash and vouchers, with a P3,100 shortage against the P20,000 balance.

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    Berjamin, Eric Brian - BSA - IA - Act (Journal)

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    Eric Berjamin
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    Mac Mac Duds Co. established a P20,000 petty cash fund on September 1. On September 15, the fund was replenished with a P10,600 check after expenses were incurred. On September 30, a count found P16,900 in cash and vouchers, with a P3,100 shortage against the P20,000 balance.

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    Intermediate Accounting

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    Berjamin, Eric Brian_ BSA _IA.Act(Journal)

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    Mac Mac Duds Co. established a P20,000 petty cash fund on September 1. On September 15, the fund was replenished with a P10,600 check after expenses were incurred. On September 30, a count found P16,900 in cash and vouchers, with a P3,100 shortage against the P20,000 balance.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    143 views3 pages

    Berjamin, Eric Brian - BSA - IA - Act (Journal)

    Uploaded by

    Eric Berjamin
    Mac Mac Duds Co. established a P20,000 petty cash fund on September 1. On September 15, the fund was replenished with a P10,600 check after expenses were incurred. On September 30, a count found P16,900 in cash and vouchers, with a P3,100 shortage against the P20,000 balance.

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    of 3

    JOURNALIZING

    Mac Mac Duds Co., a distributor of wellness equipment, decided to establish P20,000 as the
    company’s imprest system of petty cash fund. The fund was established for day-to-day small
    expenses, where issuing checks is impracticable. The date of establishment of fund is
    September 1, 201A.
    Requirement: Identify the proper entry for each of the following transactions.
    1. Record the establishment of Mac Mac Duds’ petty cash fund the entry.

    Dr. Cr.
    Petty Cash P20,000
    Cash In Bank P20,000

    From September 1 to September 4, payments were made for the following items:

    Meeting Expense P2,750


    Transportation Expense 3,500
    Supplies Expense 4,350

    No entry is required to record the above disbursements

    2. On September 15, the petty cash custodian decided to replenish the fund by submitting
    all expenditures shown above. A check worth P10,600 was issued to replenish the petty
    cash fund.

    Record the entry for replenishment.

    Dr. Cr.
    Meeting Expense P2,750
    Transportation Expense 3,500
    Supplies Expense 4,350
    Cash In Bank P10,600

    On September 30, no replenishment of petty cash was made. An examination of the


    fund revealed the following items:

    Bills and Coins P7,750


    Petty Cash Voucher For
    Advances to Employees 4,350
    Office Supplies 1,250
    Meeting Expenses 2,000
    Postage Stamps 1,550

    The cash on hand counted and paid vouchers above are worth P16,900, which is less
    than the amount of the imprest balance. Hence, the difference of P3,100 is a cash
    shortage.

    3. Record the adjusting entry on September 30, 201A to properly account the correct
    balance of petty cash.

    Dr. Cr.
    Advances to Employees P4,350
    Office Supplies 1,250
    Meeting Expense 2,000
    Postage Stamps 1,550
    Cash Shortage 3,100
    Petty Cash Fund P12,250

    4. What is the adjusted or true balance at the reporting date?

    The adjusted balance will be P7,750

    Total Cash In Bank = P20,000


    Adjusting:
    Advances to Employees P4,350
    Office Supplies 1,250
    Meeting Expense 2,000
    Postage Stam 1,550
    Cash Shortage 3,100
    P12,250
    Adjusted Balance= (20,000 – 12,250)
    Adjusted Balance= P7,750

    5. Record the adjusting entry on September 30.


    Dr. Cr.
    Advances to employees P4,350

    Office Supplies 1,250


    Meeting Expenses 2,000
    Postage Stamps 1,550
    Cash Overage P900
    Petty Cash Fund 8,250

    6. Record the entry for the deposit of the cash overage.

    Dr. Cr.
    Cash P900
    Cash Overage P900

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