The accountant of Meema Inc. established a petty cash fund of P1,400. During September, the fund was depleted by the following disbursements: Shipping expense 740 Travel expense 240 Postage expense 230 Miscellaneous supplies 170 In addition to receipts for the above items, the petty cash box contained P8 in coins and an IOU of P8 from the secretary handling the fund. The company uses a cash over and short expense account, as needed. The company decided to decrease petty cash fund to P1,000 Required: a. Provide entry to establish the petty cash fund b. Provide entry to record the disbursements as they occur. c. Provide the entry to replenish the petty cash fund d. Provide the entry to record the decrease in the petty cash fund.
The accountant of Meema Inc. established a petty cash fund of P1,400.
During September, the fund was depleted by the following disbursements:
Shipping expense 740
Travel expense 240
Postage expense 230
Miscellaneous supplies 170
In addition to receipts for the above items, the petty cash box contained P8
in coins and an IOU of P8 from the secretary handling the fund. The company
uses a cash over and short expense account, as needed. The company
decided to decrease petty cash fund to P1,000
Required: a. Provide entry to establish the petty cash fund
b. Provide entry to record the disbursements as they occur.
c. Provide the entry to replenish the petty cash fund
d. Provide the entry to record the decrease in the petty cash
fund.
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