Omar Co. maintains a monthly petty cash fund of 1,800 SAR. In September 2017, th

Question

Omar Co. maintains a monthly petty cash fund of 1,800 SAR. In September 2017, there are several withdrawing from the petty cash as follows:

Travel expenses                      410

Mail postage                          324.80

Office supplies                        270

Petrol supplies                        365.50

Customer business lunches    193

The balance of petty cash in 30th of September 2017 was 232.70

How much cash is required to replenish the petty cash fund?

Journalize the replenish petty cash fund?

(3 Marks)

11th of November 2017, a customer bought with a bank credit card from Abdullah Co. the sales were 1,700 and the bank charges 3% as processing fee. The payment is received on November 24th.

(2 Marks)

On 3rd of April 2017, ABC Co. purchased a scanner for 7,000 from Omar Co. ABC gave Omar a 12% note due in 70 days in payment for the scanner.

What is the maturity date of the note?

When is the due date of the note?

How much interest on this note?

Journalize the note and the payment?

Journalize the note if it is unpaid?

(5 Marks):

Explanation / Answer

Balance after expenses at the end of September 232.70

Less: Monthly required balnce at the end 1800

Cash required for replenish petty cash 1567.30

Journal

Petty Cash A/c Dr 1567.30

to Cash A/c 1567.3

(Being amount transferred from cash to petty cash for maintaining minimum balance)

(2) Sales 1700

+ Processing Charges 51 (1700*3%)

Payment received 1751

(3) Maturity date of note = 3rd April 2017 + 70 Days = 12th June, 2017

Due date of Note = 12th June 2017

Interest = 7000*12%*70/365 = $161

(a) Scanner a/c dr 7000

to note payable 7000

(b) Note Payable 7000

Interest exp 161

to Bank 7161

note if it is unpaid

Interest exp 161

to Interest payable 161

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