Problem 7-6

Imprest Fund System

Date Accoun titles Debit Credit

1 Petty cash 10000

Cash 10000

2 Postage 1500
Supplies 3000
Cash 4500

3 Transportation 1000
Accounts Payable 3500
Cash 4500

4 Petty cash 10000

Cash 10000

Fluctuating Fund system

Date Accoun titles Debit Credit

1 Petty cash 10000

Cash 10000

2 Postage 1500
Supplies 3000
Petty Cash 4500

3 Transportation 1000
Accounts Payable 3500
Petty Cash 4500

4 Petty cash 19000

Cash 19000
Problem 7-5

Imprest Fund System

Date Accoun titles Debit Credit

Jan-02 Petty cash 10000

Cash 10000

January 2-3No entry for the expenses

Feb-01 Postage 1500

Supplies 5500
Transportation 1200
Miscellaneous expense 800
Cash 9000

Feb-01 Petty cash 5000

Cash 5000

Fluctuating Fund system

Date Accoun titles Debit Credit

Jan-02 Petty cash 10000

Cash 10000

January 2-3Postage 1500

Supplies 5500
Transportation 1200
Miscellaneous expense 800
Petty cash 9000

Feb-01 Petty cash 14000

Cash 14000
(Replenished and balanced increased)
No. Imprest System
1 The petty cash funds balance is fixed

The expenditures of petty cash funds just

2 recorded at replenished petty cash funds
The function of petty cash recording is as a
3 tool of control and it can not be posted to
general ledger
It is necessary to make adjusting entries for
unrecorded transaction at the end of period.
4 The beginning of the next period must be
made reversing entries
 Fluctuating System
The petty cash funds balance is fluctuating. It depends
on the amount of receipts and disbursements in petty
cash funds
Each expenditure must be recorded at the transaction
occured
The function of petty cash recording is as a journal. It is
used to be a source of posting to each account in general
ledger

It is not necessary to make adjusting entries for

unrecorded transaction at the end of period. Adjusting
entries are made at the beginning of the next period