A count of petty cash fund in the morning of January 5, 2020 revealed the following:

Bills and coins P 4,560

Petty cash vouchers
dated December 2019 3,140
dated January 2020 1, 130
IOUs (without supporting vouchers)
dated December 2019 1,800
dated January 2020 1,000
Unsigned payroll envelope 2,000
(the enveloped has been opened,
there is no money inside)

The imprest balance of the petty cash fund is P10,000.

Required:
(a) Determine the amount of petty cash fund that will be included in the cash balance at December 31,
2019.
Bills and coins P4,560
Petty cash vouchers dated Jan. 2020 1,130
IOUs dated Jan. 2020 1,000 P6,690
Unsigned payroll envelope (2,000)
Petty cash fund P4,960

(b) Determine the amount of cash shortage or overage.

Bills and coins P4,560
Petty cash voucher
dated Dec. 2019 3,140
dated Jan. 2020 1,130
IOUs
dated Dec. 2019 1,800
dated Jan. 2020 1,000 P11,630
Petty cash fund 10,000
Unsigned payroll envelope 2,000 (12,000)
Cash shortage P370

(c) Prepare the necessary adjusting entry to bring the petty cash fund to its correct amount at
December 31, 2019.
Expenses P3,140
Receivables from employees 1,800
Cash shortage 370
Petty cash fund P5,310

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