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Petty Cash Part 2

PART II – merong Cash Short and Over


A) CASH SHORT SITUATION

Ok, papano na pag may Cash Short and Over? Baket ba nagkakaganoon? Kasi minsan, yung laman ng Petty Cash Box hindi na equal sa established Petty Cash. So, sa lahat ng petty cash problems, alamin mo munang unang una kung equal ba yung laman ng petty cash box sa established petty cash. Medyo lalagyan ko na ng hirap yung problem ah.

Tomasino Company’s petty cash custodian has the following in its cash box:
Bills and Coins: P 520
Petty Cash Vouchers: P 1,700
Postdated Checks from Company Officers: P 1,000
IOUs from employees (vale): P 500
An empty envelope which has a “Happy Birthday” on it. It has a “P 350” writing at the back
The Petty Cash of Tomasino is established at P3,500. The custodian will replenish the Petty Cash. Give the appropriate entries:

Ok, aalamin natin kung may Cash Short or Over nga.

So,
520 – 350 + 1700 + 1000 + 500 = P 3,370

SO, hindi equal yung nasa loob ng petty cash box sa established petty cash fund.
Teka, papano muna ki-nompute yung P3,370?

Birthday/Wedding Envelopes
Sa totoo lang, nung nagquiz kami dito way back nung college pa ako, nawindang ako dito at natatawa. Kasi hindi sya tinuro sa amin, basta nalang sya lumabas sa quiz. Anyway, kung papansinin nyo, yung P350 ibinawas sa P520 na bills and coins. Bakit? Kasi yung P350 hindi naman part ng petty cash yun. Naihalo lang yun dun. Ganon ang assumption sa mga birthday or wedding envelopes pag empty, naihalo sa Petty Cash Fund. Ang papasok ngayon sa isip nyo, papano kung hindi empty – may laman. Huwag isama sa computation ng Petty Cash fund. Ang rason – hindi talaga sya pwede maging part ng Petty Cash Fund kasi hindi naman part ng operations ang mamigay ng pera sa may birthday at kinasal. Kung sasabihin nyo, employee benefits yun, well, sasabihin ng problem kung kumukuha talaga ng pera sa petty cash fund para sa birthday at wedding ang kumpanya at dun lang natin isama sa computation ng petty cash fund ang Birthday at Wedding envelopes. Pero napaka rare nun or wala talagang ganong situation. So, ang assumption palagi, hindi talaga sya dapat nandun at hindi sya part ng Petty Cash Fund. To put simply :

Empty Envelope – ibawas sa bills and coins kasi naihalo dun yung pera
May laman ang Envelope – ignore lang sa computation ng petty cash fund

Going back, so ganon, unang step palagi pag petty cash fund problems, alamin kung equal ang laman ng cash box sa established petty cash para malaman mo kung may short or over.

In this case, P3500 – P3370 = may short pa ng P130
Saan napunta yun? Pwedeng nagkamali ng pagbibigay ng pera yung custodian, pedeng nanenok, pwede ring pinang-lunch sa Jollibee, basta, nawala – nagastos nang hindi naaccount.
So, papano treatment sa Cash Short? Depende yan.
Pag walang sinabi ang problem kung papano ang treatment, debit Cash Short – expense account yun.
Pero kung sinabi ng problem na charged lagi sa Custodian pag nawawala, debit Receivable from Custodian.

So ang entry dito:
Replenishment:
(dr) Expenses P 1,700
(dr) Receivable from Company Officers P 1,000
(dr) Receivable from employees (vale) P 500
(dr) Cash Short P 130
(cr) Cash in Bank P 3,330

So, kung sinasabi, P3,330 yung replenishment sa Petty Cash:

Totoong Value ng Bills and Coins P170
+ Petty cash replenishment P 3,330
Equals: P3,500

Makes sense? Diba.

End of Year Adjustment (kung di pa replenished)

(dr) Expenses P 1,700
(dr) Receivable from Company Officers P 1,000
(dr) Receivable from employees (vale) P 500
(dr) Cash Short P 130
(cr) Petty Cash Fund P 3,330

So, kung titignan mo ulit ung account, P3,500 yung nakarecord nugn simula tapos inadjust mo ng P3,330 e di ang magiging Petty Cash Fund Account will be P170, equal ulit dun sa Bills and Coins.

Diba? Gets po?
Madali lang Petty Cash Diba?

B. CASH OVER SITUATION


Pareho lang yun halos:

Bills and Coins: P 820
Petty Cash Vouchers: P 1,200
Postdated Checks from Company Officers: P 1,000
IOUs from employees (vale): P 500

An empty envelope which has a “Happy Birthday” on it. There is a cash of P200 inside the envelope.

The Petty Cash of Tomasino is established at P3,500. The custodian will replenish the Petty Cash. Give the appropriate entries:


Medyo binago ko yung problem, applying other situations that I have mentioned in part A. Ok, bilangin natin ang laman ng petty cash box:

820 + 1200 + 1000 + 500 = P3,520

O, compare sa Petty Cash established dali:

P 3500 – P 3520 = Cash OVER ng P20

Ok, pansinin muna natin kung pano ko nakuha yung P3,520.

Pansinin nyo, hindi na natin binawas yung Birthday Envelope? Kasi may laman eh, ibig sabihin hindi naihalo yung laman nya sa bills and coins mo. At since hindi naman sya petty cash, e di wag mo syang pansinin, ignore lang. Yun lang.

O, papano na entry:

Replenishment:
(dr) Expenses P 1,200
(dr) Receivable from Company Officers P
(dr) Receivable from employees (vale) P 500
(cr) Cash in Bank P 2,700

(dr) Cash In bank 20
(cr) Cash Overage (Miscellaneous Income ) 20

So, para saan yung pangalawang entrada? Well, ang sabi, dinideposit dapat yung overage sa bank palagi at hindi binubulsa. Pero, kelangan talaga ipakita yung pangalawang entry para mapatunayang binalik sa bank yung overage kaya hinihiwalay yun.

P820 bills and coins (yung natirang cash kanina sa petty cash mo bago mag replenish)

minus P20 na over na binalik mo sa bank

plus P 2,700

Equals: P 3,500!!!

END OF YEAR ADJUSTMENT

(dr) Expenses P 1,200
(dr) Receivable from Company Officers P
(dr) Receivable from employees (vale) P 500
(cr) Petty Cash P 2,700

(dr) Cash In bank 20
(cr) Cash Overage (Miscellaneous Income ) 20

sa nangyaring ito, binalik agad natin sa bank yung P20 na overage, wag mo nang patagalin dun.

O diba, galing galing? Madali lang petty cash!

Tanong lang!

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Categories: Petty Cash, Part 2
  1. Mahalaleel Malayo
    June 1, 2010 at 4:17 am

    tanong ko lang po kuya, (illustrative problem for cash overage) bakit po sinabing “empty envelope” eh meron naman palang laman na pera?..hehehe

    • June 3, 2010 at 9:44 pm

      Nope, it’s really empty. Nakasulat lang sa likod ng sobre yung amount na P350. So, ang malamang na nangyari doon, inilabas yung pera at naihalo sa bills and coins kaya we have to take it away from the bills and coins to follow the “entity concept” wherein the ownership of individuals are separate from the ownership of the company.

  2. Victoria Ilano
    January 7, 2011 at 9:28 am

    hi kuya! ang galing nio po. hula ko tiga-UST kau.. very useful kc xa sa auditing problems namin.. at sa lahat ng topics sa accounting para sakin mas mahirap pa ang PCF kesa sa Leases. thanks po! nagets ko din ang logic!

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