14. ABC company established a petty cash fund of birr 200 at the beginning of the month of march. During march, birr 30 was spent on entertainment expense, birr 36.2was spent on supplies expense, birr 53 was spent on postage expense, birr 40 was spent for merchandise, birr 32.9 was spent on miscellaneous items, and birr 7.9 remained on hand. Prepare a journal entry to record the establishement, replenishment and journalize the petty cash fund for the month?

Question

14.  ABC company established a petty cash fund of birr 200 at the beginning of the month of march. During march,  birr 30 was spent on entertainment expense,  birr 36.2was spent on supplies expense,  birr 53 was spent on postage expense,  birr 40 was spent for merchandise,  birr 32.9 was spent on miscellaneous items, and birr 7.9 remained on hand.  Prepare a journal entry to record the establishement,  replenishment and journalize the petty cash fund for the month?

Bot GPT 3.5 · Answer

To establish the petty cash fund: Petty Cash Dr. 200 Cash 200 To record the replenishment of the petty cash fund: Expense Category Dr. Amount spent Petty Cash Amount spent To journalize the petty cash expenses for the month: Entertainment Expense Dr. 30 Supplies Expense Dr. 36.20 Postage Expense Dr. 53 Merchandise Expense Dr. 40 Miscellaneous Expense Dr. 32.90 Petty Cash Cr. Total expenses To record the remaining cash on hand: Petty Cash Dr. 7.90 Cash Cr. 7.90