PROBLEM #1

IMPREST SYSTEM FLUCTUATING SYSTEM

May 2 Petty Cash Fund 10,000 Petty Cash Fund 10,000
Cash in bank 10,000 Cash in bank 10,000

29 Postage 1,000 Postage 1,000

Supplies 3,000 Supplies 3,000
Transportation 2,500 Transportation 2,500
Miscellaneous expense 1,500 Miscellaneous expense 1,500
Cash in bank 8,000 Petty cash fund 8,000

Petty cash fund 8,000

Cash in bank 8,000

Jun
e 30 Supplies 2,000 Supplies 2,000
Postage 1,000 Postage 1,000
Transportation 1,000 Transportation 1,000
Petty cash fund 4,000 Petty cash fund 4,000

July 1 Petty cash fund 4,000

Supplies 2,000
Postage 1,000
Transportation 1,000

15 Postage 3,500 Postage 500

Supplies 1,500 Supplies 1,500
Transportation 1,500 Transportation 500
Miscellaneous expense 500 Miscellaneous expense 500
Cash in bank 7,000 Petty cash fund 3,000

Petty cash fund 5,000 Petty cash fund 7,000

Cash in bank 5,000 Cash in bank 7,000

Petty cash fund 5,000

Cash in bank 5,000
PROBLEM #2
TIP: If the problem asks for PCF, simply ask yourself, what should be the balance of PCF? Usually, it just
includes the currency and coins, and any replenishment checks. Imagine again the cash box. The balance of
PCF should only reflect the cash.

Coins and currency 22,000

Check drawn to the order of petty cash custodian (accommodation check) 15,000
PCF to be reported 37,000

Explanation:
 Those in the form of vouchers represent unreplenished expenses.
 NSF check – receivable from employee
 Sheet of paper with names – contributions, hence, not included in PCF

PROBLEM #3

Coins and currency 2,000

Check drawn to the order of petty cash custodian 4,000
PCF to be reported 6,000