On July 1, 2014, Acting Company established an imprest (petty cash) fund in the amount of $800.00 in cash from a check drawn for the purpose of establishing the fund.
On July 31, the petty cash fund has cash of $62.84 and the following receipts on hand: for merchandise received $408.60; freight-in, $131.48; laundry service, $168.00; and miscellaneous expense, $29.08. A check was drawn to replenish the fund.
On Aug. 31, the petty cash fund has cash of $110.00 and the following receipts on hand: merchandise, $393.68; freight-in, $152.60; laundry service, $168.00; and miscellaneous expense, $15.72. The petty cash custodian is not able to account for the excess cash in the fund. A check is drawn to replenish the fund.
1. set up the petty cash fund
2.Calculate how much petty cash was used up/spent during the period (i.e petty cash limit minus cash balance still available in the petty cash tin)
3. total/tally receipts returned for monies spent
4. determine/find difference, if any.