Andrew has been buying and selling timber slabs for some years, and has recently started repairing furniture.
Question:
Andrew has been buying and selling timber slabs for some years, and has recently started repairing furniture. The business transactions are still recorded in a cash receipts book, and then transferred to an Excel Workbook, but Andrew intends to move to an electronic accountancy system in the future. It is the first of May and, as Andrew’s bookkeeper, you are to balance the Petty Cash box for the previous month and prepare for its reimbursement. The Petty Cash box and log were started a month ago, so that Andrew can have better oversight of what is being spent by the office staff. It is also your job to collect and batch the previous day’s cash, cheques, and EFTPOS receipts, balancing that against the previous day’s transactions. You will then participate in a meeting with your assessor, who will be roleplaying Andrew. His approval is needed for the month’s Petty Cash vouchers and for the Journal before it can be posted to Ledger, as set out in Andrew’s Slabs Financial Policy and Procedures. You will then role play the visit to the bank to reconcile the petty cash box and to deposit the previous day’s cheques and cash takings.
- Balance the Petty Cash Log and prepare for reimbursement of the Petty Cash Fund.
Check the petty cash log against the Petty Cash Vouchers and Petty Cash Receipts source documents, then transfer the transactions to the Petty Cash Book Worksheet in Andrew’s Workbook Template. Include the reimbursement, which is due to happen later that day.
Make the General Journal entries for the Petty Cash fund.
A Concise Introduction to Logic
ISBN: 978-1305958098
13th edition
Authors: Patrick J. Hurley, Lori Watson