Monday, April 26, 2010

What is the accounting treatment if the expenses to be replenish is higher than the petty cash fund stablish?

My question is about accounting with a particular topic in the petty cash fund. The treatment should be applicable here in the Philippines.

What is the accounting treatment if the expenses to be replenish is higher than the petty cash fund stablish?
can't be possible. If you start with $100 in petty cash fund, but you have $90 in receipts, but all the cah is gone..then you are missin a receipt and someone either stole the money or forgot to get a receipt so you can just likely call it a $10 miscellaneous expense to even it out to the $100 petty cash fund.





If you started with a fund of $100 and have $110 in receipts


then then the petty cash fund needs to be increased to $110


first..and then the $110 in expenses are written off.
Reply:All accounting is a logical flow of funds.


If the petty cash fund is $200, and the petty cash vouchers equals $250, then petty cash owes someone $50.


You cannot have negative cash, it is physically impossible.


Someone took cash out of their own pocket, and put a voucher in the petty cash boxes with the intention of being repaid.


petty cash $200


bank $200


to set up petty cash


expenses $250


petty cash $200


due to ??? $50


to record vouchers


petty cash $200


bank $200


to replenish fund
Reply:THEN YOU HAVE A CASH OVER AND SHORT





THE ENTRY SHOULD LOOK LIKE THIS:





LIST ALL EXPENSES AND THERE PRICES(DEBITS)


CREDIT CASH OVER AND SHORT


CREDIT CASH
Reply:then it shouldt be taken out of petty cash it should be payed from accounts payable


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