CLASSROOM EXERCISES ON PETTY CASH

Problem 1

As a step to safeguard the company’s cash balance, the Raj Company established an imprest petty cash fund in May
2017. The company follows a fiscal period. The end of the financial reporting period is every September 30. The
company, from August 2017 through October 2017, completed the following transactions related to petty cash.

2017
August 21 The company established an imprest petty cash fund. Issued a P25,000
check payable to the petty cash custodian.
August 21 – The petty cash custodian paid the following from petty cash
September 15 fund, all supported by properly approved petty cash vouchers:
Transportation P 5,500
Representation 3,900
Freight for merchandise purchased 5,900
Computer repairs 2,800
16 The petty cash custodian submitted the above paid petty cash
vouchers to request for replenishment of the fund. A check
was received
September 16 – The petty cash custodian paid the following from petty cash
30 fund.
Office supplies P5,300
Transportation 1,050
Meals and snacks 2,900

September 30 A count of the petty cash fund revealed the following

composition:
Bills and coins P15,750
Petty cash vouchers for
Office supplies 5,300
Meals and snacks 2,900
Transportation 1,050
The fund was not replenished on this date. Moreover, ¼ of the
office supplies was used in the business.
October 9 The fund is replenished. The composition of the fund is as
follows:
Bills and coins P 620
Representation 5,400
Office supplies 8,100
Transportation 1,380
Meals and snacks 3,000
Repairs 6,500

25 Increased the petty cash fund to P30,000

1
Problem 2

A cash count showed the following:

Imprest amount P 15,000

Coins and currency 200
Petty cash receipts 14,700

Problem 3

A cash count showed the following:

Imprest amount P 15,000

Coins and currency 200
Petty cash receipts 14,900

Required: For each of the above numbers, prepare all the necessary journal entries.

January 2017