Question

Given the following information:

Petty cash balance $525 Courier receipt $99.30   

Postage receipt $63 Office Supplies receipt $73.02   

Business meal receipt $119.14 Cash on hand at the end of the month $93.01   

  

What is the amount that needs to be reimbursed?

Answer 1

Solution.

Particulars	Amount ($)
Opening bal.( A )	525.00
Less:-
Postage receipt	63.00
Business meal receipt	119.14
Courier receipt	99.30
Office supplies receipt	73.02
Total expenses ( B )	354.46

Balance should have been ( A - B )   $170.54

Cash on hand at the end of the month. $93.01   

Shortage of Cash ( $170.54 – $93.01 ) $77.53

There is a shortage of Cash to the extent of $77.53 , this is debited to cash shortage account there by showing it as an expense in petty cash account.

Therefore, the amount to be reimbursed is the total expenses incurred + cash shortage

= $ 354.46 + $ 77.53

= $ 431.99