Question

Capital Irrigation has only a General Journal in its accounting system and uses it to record all transactions. However, the company recently set up a petty cash fund to facilitate payments of small items. The following petty cash transactions were noted by the petty cashier as occurring during April 2020:

Apr.	1	Received a company cheque for $310 to establish the petty cash fund.
	15	Received a company cheque to replenish the fund for the following expenditures made since April 1 and to increase the fund to $400.
		a. Paid $82 for janitorial service.
		b. Purchased office supplies for $88.
		c. Purchased postage stamps for $25.
		d. Paid $93 to The County Crier for an advertisement in the newspaper.
		e. Discovered that $24 remained in the petty cash box.
	30	The petty cashier noted that $247 remained in the fund and decided that the April 15 increase in the fund was too large. Therefore, a company cheque was issued to replenish the fund for the following expenditures made since April 15 and to reduce the fund to $350.
		f. Purchased office supplies for $93.
		g. Reimbursed office manager for business auto, $45.
		h. Paid $15 courier charges to deliver merchandise to a customer.

Prepare journal entries to record the establishment of the fund on April 1 and its replenishments on April 15 and April 30.

1. Record to establish fund.

2. Record to reimburse fund and increase it by $90.

3. Record to reimburse fund and decrease it by $50.

Answer 1

Answer-:

Petty cash fund is used to meet small daily expenses. Petty cash ledger is used to record all such transactions.

Thankyou.........