Cash and bank: journal entry worksheet
Name: Date:
Convention: United States (US textbooks)
Record each transaction as a journal entry: write each account in the Debit or the Credit column with its amount.
Setting up a petty cash fund
A company establishes a petty cash fund of $300.00 for small office expenses. A check for $300.00 is written and cashed, and the money is given to the petty cash custodian.
Assumptions: Imprest system: the Petty Cash account changes only when the fund is set up, enlarged or reduced.
Accounts to choose from: Cash Short and Over · Accounts Payable · Supplies Expense · Owner’s Drawings · Petty Cash · Cash
Account Debit Credit Replenishing petty cash after several small expenses
The petty cash fund is replenished to its fixed amount with a check. The receipts in the fund show: office supplies $46.00, postage stamps $23.00, and the repair of a door lock $85.00. The cash left in the fund plus the receipts equals the fund’s fixed amount.
Assumptions: Imprest system: payments from the fund are recorded when the fund is replenished. Office supplies are expensed when bought. Any sales tax is included in the amounts.
Accounts to choose from: Supplies Expense · Cash · Cash Short and Over · Petty Cash · Accounts Payable · Repairs Expense · Postage Expense
Account Debit Credit Customer check returned NSF
A customer paid its account of $1,250.00 with a check, which the company deposited. Today the bank statement shows the check returned NSF (not sufficient funds): the bank deducts $1,250.00 and charges a fee of $12.00 for the returned check.
Assumptions: The company still expects to collect the amount. It bears the bank fee itself (it does not charge it to the customer).
Accounts to choose from: Petty Cash · Sales Revenue · Bank Service Charges · Notes Receivable · Interest Expense · Accounts Receivable · Cash
Account Debit Credit Bank collects a note receivable for the company
The bank statement shows that the bank collected a note receivable on the company’s behalf: the face value of $5,000.00 plus interest of $150.00, less a collection fee of $25.00. The company learns of it while preparing its bank reconciliation.
Assumptions: No interest on the note was accrued before: all of it is earned now.
Accounts to choose from: Accounts Receivable · Interest Revenue · Bank Service Charges · Interest Expense · Cash · Notes Receivable · Petty Cash
Account Debit Credit Bank fee and interest found in a bank reconciliation
While preparing the monthly bank reconciliation, a company finds two items on the bank statement that are not in its books: a service charge of $35.00 and interest of $16.00 earned on the account.
Assumptions: No tax is withheld on the interest.
Accounts to choose from: Interest Expense · Notes Receivable · Bank Service Charges · Cash · Accounts Receivable · Interest Revenue
Account Debit Credit Cash shortage found at the cash count
At the month-end count, the cash on hand in the register is $483.70, while the company’s records of cash on hand show $496.20. No reason for the difference can be found.
Assumptions: The company records unexplained cash differences in a Cash Short and Over account; no employee is held responsible.
Accounts to choose from: Accounts Receivable · Cash · Bank Service Charges · Petty Cash · Sales Revenue · Cash Short and Over
Account Debit Credit Customer pays two invoices by one bank transfer, less a bank fee
A customer pays two invoices on account, of $2,360.00 and $1,180.00, with a single wire transfer. The company’s bank deducts an incoming wire fee of $6.50 and credits the rest to the company’s account.
Assumptions: The invoices were recorded when they were issued. The company bears the bank fee.
Accounts to choose from: Sales Revenue · Unearned Revenue · Bank Service Charges · Cash · Notes Receivable · Accounts Receivable
Account Debit Credit
Not in this convention: Depositing the cash takings in the bank; Withdrawing cash from the bank, with a fee; Transferring money between two of the company’s bank accounts
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