What is the accounting treatment if the expenses to be replenish is higher than the petty cash fund stablish?

Question

My question is about accounting with a particular topic in the petty cash fund. The treatment should be applicable here in the Philippines.

Answer 1

THEN YOU HAVE A CASH OVER AND SHORT

THE ENTRY SHOULD LOOK LIKE THIS:

LIST ALL EXPENSES AND THERE PRICES(DEBITS)

CREDIT CASH OVER AND SHORT

CREDIT CASH

Answer 2

can't be possible. If you start with $100 in petty cash fund, but you have $90 in receipts, but all the cah is gone..then you are missin a receipt and someone either stole the money or forgot to get a receipt so you can just likely call it a $10 miscellaneous expense to even it out to the $100 petty cash fund.

If you started with a fund of $100 and have $110 in receipts

then then the petty cash fund needs to be increased to $110

first..and then the $110 in expenses are written off.

Answer 3

All accounting is a logical flow of funds.

If the petty cash fund is $200, and the petty cash vouchers equals $250, then petty cash owes someone $50.

You cannot have negative cash, it is physically impossible.

Someone took cash out of their own pocket, and put a voucher in the petty cash boxes with the intention of being repaid.

petty cash $200

        bank   $200

to set up petty cash

expenses $250

    petty cash $200

    due to ??? $50

to record vouchers

petty cash $200

       bank   $200

to replenish fund

Answer 4

then it shouldt be taken out of petty cash it should be payed from accounts payable