PCF PROBLEMS
PROBLEM 1
The petty cash fund of Php 200 for Walsh Company appeared as follows on
December 31, 2011:
Cash Php 95.60
Petty cash vouchers
Freight in Php 19.40
Postage 40.00
Balloons for a special occasion 18.00
Meals 25.00
Instructions
1. Briefly describe when the petty cash fund should be replenished. Because there is
cash on hand, is there a need to replenish the fund at year end on December 31?
Explain.
2. Prepare in general journal form the entry to replenish the fund.
3. On December 31, the office manager gives instructions to increase the petty cash
fund by Php 100. Make the appropriate journal entry
PROBLEM 2
Prepare the entry to replenish the Php 200 petty cash fund of Warner Company,
assuming the fund has receipts for: freight-out Php 60, postage Php 105, and
miscellaneous expense Php 20. The fund contains Php 12 in cash.
PROBLEM 3
On October 1, 2011, Foster Company establishes an imprest petty cash fund by
issuing a check for Php 150 to Jill Nott, the custodian of the petty cash fund. On
October 31, 2011, Jill Nott submitted the following paid petty cash receipts for
replenishment of the petty cash fund when there is Php 7 cash in the fund:
Freight-in Php 25
Office Supplies Expense 35
Entertainment of Clients 60
Postage Expense 20
Instructions
Prepare the journal entries required to establish the petty cash fund on October 1
and the replenishment of the fund on October 31.
PROBLEM 4
Account of the petty cash fund of Timex Company showed its composition as follows:
Coins and currency 3,300
Paid vouchers:
Transportation 600
Gasoline 400
Office Supplies 500
Postage stamps 300
Due from employees 1,200
TOTAL 3,000
Managers check returned by bank marked “NSF” 1,000
Check drawn by the entity to the order
of petty cash custodian 2,700
What is the correct amount of the petty cash fund for statement presentation purposes?
UNREPLENISHED
Transportation 600
Gasoline 400
Office Supplies 500
Postage stamps 300
Due from employees 1,200
Cash short 1,000
Petty Cash Fund 4,000
Correct PCF (3300 + 2700) P6K
