Polytechnic University of the Philippines

Sta. Mesa, Manila

November 2021
Module 02 Instructor: John Bo S. Cayetano

Use the following information for the next two (2) questions:
A surprise count of the petty cash fund of Jing Trading on July 4, 2021 showed the following:

Currencies 5,600
Coins 450
Paid vouchers for:
Office supplies (dated July 2, 2021) 1,750
Newspaper subscription for two weeks (dated June 29, 2021) 300
Loans to employees 3,000
Company check representing replenishment of petty cash fund 3,850
The company’s fiscal year ends of June 30. The petty cash fund was established for an amount of P15,000.

1) What is the correct amount of petty cash fund at June 30, 2021?
A. 6,050 B. 9,900 C. 11,650 D. 15,000

2) How much is the shortage or overage in the petty cash fund at June 30, 2021?
A. 50 shortage B. 50 overage C. 1,800 shortage D. 1,800 overage

3) Nicole Ocampo Company established a petty cash fund of P10,000 on July 1, 2021. At the end of the
month, the count of cash on hand indicated that P3,557.40 remained in the fund. A review of petty cash
vouchers disclosed the following expenses had been incurred during the month:
Office supplies – P841.60;
Postage – P780.00;
Representation – P1,000,00;
Transportation – P1,321.40; and
Miscellaneous – P837.60

Other items found in the petty cash drawer were as follows:

● A sympathy envelope containing P3,500, representing employees’ contributions for the death of the
mother of the company’s messenger.
● An employee’s check for P1,100 dated August 15, 2021.

The given information indicates that there is a

A. 562 shortage B. 562 overage C. 538 shortage D. 538 overage

Use the following information for the next two (2) questions:
The petty cash fund (imprest balance of P45,000) of Tokio Hotel on December 31, 2020 is composed of the
following:
Coins and currencies 17,000
Petty cash vouchers:
Postage stamps 1,000
Supplies 2,000
Cash advances to employees 3,000
Employee’s check returned by bank marked DAIF 4,000
Replenishment check drawn by the company payable to the order of Yoon Eun Hye, petty 18,000
custodian
Unused postage 500
Check payable to Meralco, for payment of company’s utility bills 3,500
A sheet of paper with names of employees together with contribution for a birthday gift of a 4,500
co-employee

4) How much is the cash shortage or overage as of December 31, 2020?

A. 4,500 short B. 8,000 short C. 12,000 short D. None

5) How much petty cash fund shall be shown as part of “Cash” balance as of December 31, 2020?
A. 17,000 B. 21,000 C. 30,500 D. 35,000

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6) The petty cash fund account of Magiting Company showed the following:
Coins and currency 5,500
Paid vouchers:
Transportation 200
Gasoline 150
Office supplies 250
Postage stamps 200 800
Due from employees 1,200

Digging deeper into the records, you realized that there is a Manager's check returned by bank marked
"NSF" for 1,000. There is also a check drawn by company to the order of petty cash custodian amounting
to 3,500. What is the amount of the petty cash fund for balance sheet purposes?
A. 10,000 B. 9,000 C. 11,000 D. 5,800

7) If a petty cash fund is established in the amount of P250, and contains P150 in cash and P95 in receipts
for disbursements when it is replenished, the journal entry to record replenishment should include credit (s)
to the following account (s):
A. Petty cash, P75 C. Cash, P95; cash short and over, P5
B. Petty cash, P100 D. Cash, P100

8) If a petty cash fund is established in the amount of P250, and contains P150 in cash and P95 in receipts
for disbursements when it is replenished, the journal entry to record replenishment should include credit (s)
to the following account (s):
A. Petty cash, P75 C. Cash, P95; cash short and over, P5
B. Petty cash, P100 D. Cash, P100

Use the following information for the next two (2) questions:
An examination on the morning of January 2, 2021 by the auditor for 2PM Company discloses the following
items in the petty cash drawer:
Postage stamps 220.00
Currency and coins 1,156.60
IOUs from members of the office staff 1,210.00
An envelope containing collections for a gift for a departing employee, with office names 350.00
attached
Petty cash vouchers for miscellaneous expenses (including a PCV for stamps purchased for 985.00
P450)
Employee’s check postdated January 15, 2021 1,500.00
Employee’s check marked “DAIF” 1,890.00
Check drawn by 2PM Company to Petty Cash Custodian 3,450.00
Total 10,761.60

The ledger account discloses a P10,500 balance for Petty Cash.

9) How much is the cash shortage or overage as of December 31, 2020?

A. 658.40 short B. 308.40 short C. 41.60 over D. 3.698.40 short

10) How much is petty cash fund shall be shown as part of “Cash” balance as of December 31, 2020?
A. 4,606.60 B. 4,256.60 C. 806.60 D. 6,106.60

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