Concept Introduction:
Petty Cash Fund:
Petty cash funds the amount of money provided for day-to-day small expenses depending upon the level of business. All the expenses are made by paying cash; hence there is an important need to maintain control over petty cash funds.
Requirement-1:
To Prepare:
The journal entries to record the establishment of the Petty Cash fund and reimbursement of the fund.
Concept Introduction:
Petty Cash Fund:
Petty cash funds the amount of money provided for day-to-day small expenses depending upon the level of business. All the expenses are made by paying cash; hence, there is an important need to maintain control over petty cash funds.
Requirement-2:
To Identify:
The two events which cause a petty cash account to be credited in a
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- Evaluating Internal Control of Cash The following procedures were recently installed by Raspberry Creek Company: a. After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing. b.The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documentation is forwarded to the treasurer's office for approval. c. Along with petty cash expense receipts for postage, office supplies, etc., several postdated employee checks are in the petty cash fund. d. At the end of the day, cash register clerks are required to use their own funds to make up any cash shortages in their registers. e. At the end of each day, all cash receipts are placed in the bank's night depository. f. At the end of each day, an accounting clerk compares the…arrow_forwardDetermine whether each procedure described below is an internal control strength or weakness. Internal Control Principle 1. Large amounts of cash are kept in a desk drawer to pay liabilities over $1,000. 2. The recordkeeper is in charge of signing checks and handling cash. 3. Employees handling cash do not have access to accounting records. Weakness or Strengtharrow_forwardA petty cash system is designed to a. encash checks of selected employees. b. handle cash sales. c. account for all cash receipts and payments of minimal amounts. d. pay small and immediate miscellaneous expensesarrow_forward
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