1. LESSON 9-3 Performing Additional Cash Payments Journal Operations

2. REPLENISH PETTY CASH DebitCredit Cash $210.83 Supplies-Office 32.33 Advertising Exp. 50.00 Miscellaneous Exp. 128.50 October 31. Replenished Petty Cash Fund. Purchased supplies-office for $32.33, Advertising for $50, and Miscellaneous for $128.50. What accounts are impacted? What if the amount in the petty cash box is off? What additional account is impacted? Cash Short and Over Cash Payments Journal DateAccount Title Ck No Post. Ref General Accounts Payable Debit Purchase Discount Credit Cash Credit DebitCredit

3. Errors in Petty Cash will occur: Cash on hand = the amount left in you petty cash box Cash over: petty cash on hand > recorded amount Cash short: petty cash on hand < recorded amount More likely to be cash short Cash shortage adds to cost of operating (expense) Cash Over = Entered as a Credit (negative number) Cash Short = Entered as a Debit (positive number) PETTY CASH ERRORS

4. PETTY CASH REPORT 7.Count the actual amount of cash on hand (what is left in box – you have – you have $33.85). 5 1.Enter date and Custodian 2.Fund Total= Fund Maximum 3.Enter spending 4.Calculate the total payments 6.Recorded amount on hand = Fund total less total payments (what should be left in box) 8.Recorded amount less actual amount on hand: - positive number = cash short (i.e. purchased pop for $1.59 not recorded) - Debit Cash Short Account 1.59 5.Move to replenish amount On October 31, Replenished Petty Cash Fund ($250 fund amount). Supplies-Office $45.34, Advertising $25.00, and Miscellaneous $144.22. C303

5. PETTY CASH REPORT Is this a Cash Short or a Cash Over? Positive = Cash Short Will you Credit or Debit the cash Short and Over Account? Debit (increases replenish amount) Record Transaction in Cash Payment journal. What accounts: Cash DebitCredit Supplies – Office 45.34216.15 Advertising Exp. 25.00 Miscellaneous Exp.144.32 Cash Short Over 1.59 On October 31, Replenished Petty Cash Fund ($250 fund amount). Supplies-Office $45.34, Advertising $25.00, and Miscellaneous $144.22. The actual amount you count as on hand is $33.85. C303

6. PETTY CASH REPORT Record Transaction in Cash Payment journal. What accounts: Cash DebitCredit Supplies – Office 45.34216.15 Advertising Exp. 25.00 Miscellaneous Exp.144.32 Cash Short Over 1.59 Cash Payments Journal DateAccount Title Ck No Post. Ref General Accounts Payable Debit Purchase Discount Credit Cash Credit DebitCredit

7. REPLENISHING A PETTY CASH FUND Is this a Cash Short or a Cash Over? Negative = Cash Over Will you Credit or Debit the cash Short and Over Account? Credit (decreases replenish amount) Do my Debits and Credits Equal? 32.33+50.00+128.50= 210.83 208.66 = 2.17 = 210.83

8. TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL 1.Rule a single line. 2.Write the date. 3.Write the words Carried Forward in the Account Title column. 4.Place a check mark in the Post. Ref. column 5.Write each column total. 6.Rule double lines.

9. STARTING A NEW CASH PAYMENTS JOURNAL PAGE 1.Write the journal page number. 2.Write the date. 3.Write the words Brought Forward in the Account Title column. 4.Place a check mark in the Post. Ref. column. 5.Record the column totals.

10. TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL AT THE END OF A MONTH 1.Rule a single line. 2.Write the date. 3.Write the word Totals in the Account Title column. 4.Write each column total. 5.Rule double lines.

11. TERMS REVIEW cash short cash over

12. WTG WTG 9-3

14. Trade Discount: Purchased merchandise from Helms Supply with a list price of $1700 with a trade discount of 40%. Purchase Discount: Paid Cash on account to Golf Craft, for P82 for $498, less a 2%discount. 14 LESSON 9-3 Cash Payments Journal DateAccount Title Ck No Post. Ref General Accounts Payable Debit Purchase Discount Credit Cash Credit DebitCredit