VKS Company established a petty cash fund of P10,000 on July 1, 2021.  At the end of the month, the count of cash on hand indicated that P3,757.10 remained in the fund.  A review of the petty cash vouchers disclosed the following expenses had been incurred during the month:       Office supplies – 741.90; Postage – 880; Representation – 900; Transportation – 1,421.40; Miscellaneous – 837.60  Other items found in the petty cash drawer were as follows: A sympathy envelope containing P3,500, representing employee’s contributions for the death of the father of the company’s janitor.  An employee’s check for P900 dated August 15, 2021.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 20E
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VKS Company established a petty cash fund of P10,000 on July 1, 2021.  At the end of the month, the count of cash on hand indicated that P3,757.10 remained in the fund.  A review of the petty cash vouchers disclosed the following expenses had been incurred during the month:      

Office supplies – 741.90; Postage – 880; Representation – 900; Transportation – 1,421.40; Miscellaneous – 837.60

 Other items found in the petty cash drawer were as follows:

A sympathy envelope containing P3,500, representing employee’s contributions for the death of the father of the company’s janitor.

 An employee’s check for P900 dated August 15, 2021.

 The given information indicates that there is a _________________

A. cash shortage of P562.00
B. cash overage of P538.00
C. cash overage of P562.00
D. cash shortage of P538.00
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