7.14 Petty Cash System for Cosgrove Enterprise The accountant of Cosgrove Enterprises (a small retailing business with an annual turnover of about $250,000 and ve sales employees) established the petty cash system with $200 on 1 September. On 16 September, the petty cashier informed the accountant about the following expenditures from the petty cash system and that he was running low on cash for the month: Expense vouchers: $ Postage & Stationery 42.50 Travelling Expenses 59.40 Meals & entertainment 61.90 Miscellaneous 20.80 On 17 September, the accountant reimbursed the petty cashier for the petty cash spending and also gave another cheque of $200 to the petty cashier to increase the petty cash fund as she did not want to be bothered with fortnightly reimbursements. Required: (i) Show the appropriate entries in the Petty Cash Fund and Petty Cash Expenses Accounts. (ii) Discuss briefly the implications of the accountant increasing the petty cash fund without doing any investigations into whether cash is being spent appropriately under the petty cash 207 system