Ace De la Paz is reviewing the cash accounting for BBQ, Inc.

Ace’s review will focus on the petty cash

fund account for the month ended May 31, 2019. She has collected the following information from
BBQ’s bookkeeper for this task.
Petty Cash Fund
1. The petty cash fund was established on May 2, 2019, in the amount of 10,000.
2. Expenditures from the fund by the custodian as of May 31, 2019, were evidenced by approved petty
cash vouchers for the following:
Various office supplies 3,920
IOU from employees 1,200
Shipping Charges 2,298
Miscellaneous Expense 1,526
On May 31, 2019, the petty cash fund was replenished and increased to 12,000; currency and coin in the
fund at that time totaled P756.
1. What is the amount of petty cash shortage? a. 2,300 b. 11,244 c. 300 d. 0
2. The journal entry to record the replenishment and increase in the petty cash fund includes a credit to
a. Cash of 10,944 b. Cash of 11,244 b. c. Petty cash fund of 10,944d. Petty cash fund of 11,244