Question

From the following information prepare the journal entries for the petty cash fund:

1/1 establish the petty cash fund with a balance of $25

3/1 Increase the petty cash fund to $50

4/1 Replenish the petty cash fund from the information below:

Postage expsense 2.50

Freight expense. 6.00

Office supplies. 4.00

Business meals 20.00

Answer 1

Date	General Jorunal	Debit	Credit
1-Jan	Petty Cash fund	$    25.00
	Cash		$    25.00
	(Petty cash fund established)
1-Mar	Petty Cash fund	$    25.00
	Cash		$    25.00
	(increase in petty cash fund)
1-Apr	Postage expenses	$       2.50
	freight expenses	$       6.00
	office supplies	$       4.00
	business meals	$    20.00
	Petty cash fund		$    32.50
	(Booking of expenditure from fund)
	Petty Cash fund	$    32.50
	Cash		$    32.50
	(Replenishment)