Maintenance of Petty Cash Accounts

The following transactions occurred during the month of August 2023 for P & L Traders.

1. Write petty cash vouchers for the transactions that qualify for processing.
2. After completing petty cash vouchers, use the Excel sheet to input relevant information and balance the petty cash account as at the end of the period.

The following are the accounts to be used:

Motor Expenses 1003-2 Travel and Entertainment 1008-6

Postage and Stationery 1006-4 Staff Welfare 1004-8

Freight Expense 1007-5 Cleaning expenses 1009-1

The float amount given to the Petty Cashier at the start of the period is $1000.00.

Aug 2 The HR Manager sent the driver to CKs Supervalu to purchase some cleaning items for the office. He went with a Purchase Order totaling $1,540.00, so that he can receive the items as we have monthly credit with this company.

Aug 6 The sales manager booked an urgent flight to the United States to tend to her uncle who was admitted to the hospital, so the HR manager called the petty cashier requesting funds, so she can purchase a get-well card on such short notice. When she returned, she presented a receipt for $14.00.

Aug 7 One of the workers in the production department accompanied the driver to the port to clear some of our goods that we imported. He came to the office requesting petty cash to pay for entry to the port. He was not exactly sure how much was the entry fee, so the petty cashier gave him $50.00, while awaiting an official receipt. On his return he presented a receipt for $30.00 and gave the petty cashier her $20.00 change.

Aug 10 Two of our sales representatives were sent to represent the company in a general meeting. It was an 8-hour session, so they are entitled to lunch $40.00 each and transport $10.00 each.

Aug 13 The Marketing manager who has access to a company credit card, went to purchase some decorations for an event they were hosting, however when she got to the store, the credit card machine was down, and she had to use $85.00 of her own funds to purchase the items. On her return she presented the receipt to the petty cashier, so that she could be refunded.

Aug 17 Our company was hosting some foreign investors, who were looking to invest in our company. Upon their arrival, one of the investors requested a temporary drivers license, so that he can rent a vehicle for the duration of their time here. We paid the license department $60.00 on his behalf.

Aug 20 The Quality Assurance department held a training session, and needed card stock to print the certificates, however Bryden and minors who we have a charge account with, did not have any. So, they called Office Pros, got the price, and sent the driver with the $45.00 to purchase a packet.

Aug 23 During a staff celebration, the cleaner realized that there were only soup bowls in the kitchen, and we needed plates, so she gave this information to HR manager and she requested petty cash for the purchase. It totaled $25.00.

Aug 25 One the trainee driver was not aware of the petrol stations that the company has charge accounts with, so after filling up the company bus with $175.00 worth of diesel, he was expected to pay. He swiped his card as he did not have any funds on him. Upon returning to the office, he presented the credit card slip and receipt, he was refunded $100.00 in cash as that is the maximum amount to disburse for petty cash and he agreed to get the $75.00 transferred to his account.

Aug 26 BT Construction built three storage lockers in the accounting office, on completion of the job, they requested cash payment totaling $800.00. The accountant explained that for this amount of payment, only cheques or direct deposits are issued.

Aug 30 While awaiting the shipment with our cleaning items, the cleaner requested petty cash to get some small items in the interim. She requested $50.00, returning with change of $3.00.

c. List (3) Security Procedures used in Petty Cash Accounting

d. State (2) Source documents necessary to validate a petty cash voucher