Bookkeeping 39

Question 1

1. p 94. Removals of cash from the PETTY CASH FUND must be supported by:

Answer 1

a RECEIPT or a PETTY CASH VOUCHER.

Question 2

2. At the end of the period, the cash remaining is counted and the RECEIPTS and VOUCHERS are totaled. Their sum total must equal:

Answer 2

THE ESTABLISHED AMOUNT. Receipts are then POSTED to the CASH PAYMENTS JOURNAL to CREDIT CASH and DEBIT the APPROPRIATE EXPENSE ACCOUNTS.

Question 3

3. When should you set up a SPECIAL PETTY CASH JOURNAL?

Answer 3

When you have a very active Petty Cash fund

Question 4

4. How do you open the PETTY CASH ACCOUNT?

Answer 4

A check is DRAWN to PETTY CASH and entered in the Special Journal.

Question 5

5. What is the FORMAT for the SPECIAL PETTY CASH JOURNAL?

Answer 5

See p 95

Question 6

6. At the end of the month, total the columns in the PETTY CASH SPECIAL JOURNAL and:

Answer 6

the totals are posted as a DEBIT to each INDIVIDUAL EXPENSE ACCOUNT and a CREDIT to PETTY CASH.