Problem 11.11

Petty cash transactions

The following transactions and events relate to the petty cash fund (imprest amount $200) of Honshu Ltd (all amounts include GST):

1. Paid $27.50 delivery charges on inventory purchased.

2. Paid $44 (part payment) for the repair of computer scanner.

3. Purchased office supplies, $31.90.

4. Paid $20 for postage (GST-free).

5. Paid $16.50 for newspapers.

6. The petty cashier exchanged the vouchers in the petty cash box for a cheque to reimburse the fund and to increase the size of the fund from $200 to $250.

7. Paid Post Express $44 for delivery of urgently needed supplies.

8. Paid $33 for office window cleaning.

9. Reimbursed an employee $17.60 for taxi fares for business-related trip.

10. Paid $12.75 for coffee and supplies for the staffroom.

11. Refunded $29.70 for petrol purchased by driver for business delivery vehicle.

12. Paid $33 for dry-cleaning an office curtain.

Required

Note: GST can be ignored in this question by treating all amounts as including GST.

Show the entries in the cash payments journal to:

1. establish the petty cash fund for the amount of $200 (cheque no. 0137)

2. reimburse the fund after transaction (5) and increase its size to $250 with cheque no. 0146 (delivery charges and express delivery payments are to be debited to Freight Inwards; expenses unrelated to motor vehicles, office supplies and postage should be debited to Sundry Expenses.)

3. reimburse the fund after transaction (12) (cheque no. 0155).