Question

A Business Established a $400 petty cash fund on July 1. During the month of July, petty cash was issued in exchange for the following receipts:

July2 - Supplies $65

July 7- Courier $10

July 10- Postage $52

July 17 Advertising- $48

July 18- Postage- $20

July 25- Advertising- $57

Juy 28- Courier $60

On July 31, the cash is counted and the balance remaining is found to be $85. A cheque is issued to replenish the fund and increase the fund to $500. Prepare the necessary journal entries for July 1 and July 31.

Answer 1

Date	Account Title	Debit $	Credit $
july 1st	Petty Cash	400
	cash		400
	(Being amount transferred to petty cash)
july 2	Supplies	65
	petty cash		65
	(Being expenses incurred from petty cash)
july 7	courier	10
	Petty cash		10
	(Being expenses incurred from petty cash)
july 10	postage	52
	petty cash		52
	(Being expenses incurred from petty cash)
july 17	Advertiseing	48
	Petty cash		48
	(Being expenses incurred from petty cash)
july 18	Postage	20
	Petty cash		20
	(Being expenses incurred from petty cash)
july 25	Advertiseing	57
	Petty cash		57
	(Being expenses incurred from petty cash)
july 28	Courier	60
	Petty cash		60
	(Being expenses incurred from petty cash)
july 31	Petty cash	100
	cash		100
	(Being amount in petty cash increased)