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On September 1, 20x1, the board of directors of ABC Co. passed a resolution for the establishment of a P10,000 petty cash fund. Single
On September 1, 20x1, the board of directors of ABC Co. passed a resolution for the establishment of a P10,000 petty cash fund. Single disbursements amounting to less than P2,000 will be made through this fund. Those amounting to P2,000 or more will be made through checks. The following were the transactions during the period. Sept. 1 Established P10,000 petty cash fund. Sept. 1-21 Disbursements are made for the following: a. Groceries for use of employees in the pantry, P1,400. b. Transportation of Mang Benny, the messenger boy, P500. c. Snacks during meetings and conferences, P1,000. d. Gasoline for company vehicles, P3,000. e. Pedicure of Ms. Ana (secretary of the boss) -authorized, P3,000. Sept. 22 Required: Prepare the journal entries. B. Petty cash fund As of December 3,120x1, the petty cash fund of ABC Co. with a general ledger balance of P5,000 comprises the following: Coins and currencies Petty cash vouchers: Total coins and currencies in the petty cash box is P500. Gasoline for delivery equipment Medical supplies for employees IOUS: Advances to employees A sheet of paper with names of several employees together with contribution to a bereaved employee. Attached is a currency of Checks: Check drawn to the order of the petty cash custodian P850 1.000 680 740 800 1,000 Required: 1. How much petty cash fund will be included as part of cash at December 31? 2. What is the entry to replenish the fund on December 31?
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