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11 January, 10:39

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.

Required:

(a) On December 30, actual cash in cash register, $5,058; cash receipts per cash register tally, $5,081

(b) On December 31, actual cash in cash register, $3,612; cash receipts per cash register tally, $3,499

Refer to the Chart of Accounts for exact wording of account titles.

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  1. 11 January, 12:03
    0
    a. Dr Cash $ $4,958

    Dr Cash over and short $123

    Cr Sales $5,081

    b. Dr Cash $3,512

    Cr Cash over and short $13

    Cr Sales $3,499

    Explanation:

    a) According to the given data we hace the following:

    Actual Cash in register $5,058 and cash receipts $5,081

    $5,058-$100=$4,958

    Therefore, Dr cash over and short=$5,081-$4,958=$123

    Therefore, the journal entry would be as follows:

    Dr Cash $ $4,958

    Dr Cash over and short $123

    Cr Sales $5,081

    b) Actual cash in cash register $3,612 and cash receipts $3,499

    $3,612-$100=$3,512

    Therefore, Dr cash over and short=$3,512-$3,499=$13

    Therefore, the jorunal entry would be as follows:

    Dr Cash $3,512

    Cr Cash over and short $13

    Cr Sales $3,499
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