Question

The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times. Present entries to record the transactions for each of the two days of cash receipts from sales.
(a) Actual cash in cash register, $5,412.36; cash receipts per cash register tally, $5,413.07.
(b) Actual cash in cash register, $3,712.95; cash receipts per cash register tally, $3,712.16.
What will be an ideal response?

Answer 1

Answer:

a, Journal Entries to record transactions

Account Titles                 Debit           Credit

Cash                                 $5,412.36

Cash Short and Over      $0.71

($5,413.07 - $5,412.36)  

Sales                                                   $5,413.07

The actual cash in cash register is debited to cash account and cash receipts per cash register tally is credited to sales account and the balancing figure is debited or credited to Cash short and over account.

b. Journal Entries to record transactions

Account Titles                 Debit           Credit

Cash                                $3,712.95

Cash Short and Over                            $0.79

(3,712.95 - 3,712.16)

Sales                                                      $3,712.16