Question

a cheque was issued for the petty cash fund for $250 and was cashed. management decided that the petty cash fund should be replenished when the balance in the cash box reaches $140. at the end of month, the balance in the petty cash account was $40. the totalled receipts showed the balance of $154. how much is the cash over and short for month end?

Answer 1

The cash over and short at the end of the month is $54.

Step-by-step explanation:

In this scenario, the petty cash fund was initially replenished with a cheque for $250. Management decided to replenish the fund when the balance in the cash box reaches $140. At the end of the month, the balance in the petty cash account was $40 and the totalled receipts showed a balance of $154.

To calculate the cash over and short for month end, we need to compare the targeted replenishment balance ($140) with the actual balance ($40) and the totalled receipts ($154). The formula to calculate the cash over and short is:

Cash over and short = Actual balance + Total receipts - Target replenishment balance

Using the given information, the calculation would be:

Cash over and short = $40 + $154 - $140 = $54

Therefore, the cash over and short at the end of the month is $54.