Question

Journalize the entries for the following transactions:

Mar. 1 Established a petty cash fund of $771.
31 The amount of cash in the petty cash fund is now $632. The fund is replenished based on the following receipts: office supplies, $33 selling expenses, $113.
Record any discrepancy in the cash short and over account. If an amount box does not require an entry, leave it blank.

Answer 1

Mar 1

Dr Petty Cash $771.00

Cr Cash $771.00

Mar 31

Dr Office Supplies $33.00

Dr Selling Expenses 113.00

Cr Cash Short and Over $27.00

Cr Cash $119.00

Step-by-step explanation:

Preparation of the entry to Record any discrepancy in the cash short and over account.

Mar 1

Dr Petty Cash $771.00

Cr Cash $771.00

(To record petty cash)

Mar 31

Dr Office Supplies $33.00

Dr Selling Expenses 113.00

Cr Cash Short and Over $27.00

[($33+$133+$632)-$771]

Cr Cash $119.00

(33+$133-$27)

(To Record discrepancy in the cash short and over account)