CHAPTER 35 The petty cash book and monitoring

CHAPTER 35 The petty cash book and monitoring overheads Based on Qs 1 and 2 (page 196) in the Workbook: Q 5 (page 319) in the Textbook and Qs 8 and 9 (page 201) in the Workbook

Q 1 Petty cash voucher no. 88 Date____ 1/1/2011 Amount Purpose of payment _____________ Purchase of stamps Received by ________________ Tommy O’Dowd Barney Mc. Cormack Authorised by ________________ € 20. 00

Q 2 Petty cash voucher no. 89 Date____ 2/2/2011 Amount Purpose of payment _____________ Travel expenses Received by ________________ Jack Burke Sean O’Laighean Authorised by ________________ € 50. 50

Q 5 Text book Page 319 Date Jul-10 1 Details Balance Total Date € Jul-10 400 1 3 6 8 9 12 18 19 22 31 31 31 Balance b/d Cheque 400 150 250 Details Writing paper Window cleaning Postage Courier Bus fare Writing paper Deposit, airline ticket Furniture repairs Courier Total spent Balance c/d Voucher Total No. € 1 32 2 25 3 22 4 29 5 12 6 45 7 50 8 20 9 15 250 150 400 Postage Stationery Travel € € € 32 Cleaning Sundries € € 25 22 29 12 45 50 20 15 66 GL 7 77 GL 8 62 GL 9 25 GL 10 20 GL 11

Q 5 (cont) Postage A/C (7) € Date Details F 31/7/10 Petty Cash PCB 1 € F € 66 Stationery A/C (8) € Date Details Date F 77 Travel A/C (9) € Date Details F 31/7/10 Petty Cash PCB 1 62 F €

Q 5(cont) Date Details Cleaning A/C (10) F € Date Details 31/7/10 Petty Cash PCB 1 Date Details Sundries A/C (11) F € Date Details 31/7/10 Petty Cash PCB 1 F € 25 55

Q 8 Workbook page 201 Budget Comparison Statement for January – June 2011 Overhead Budgeted cost Actual cost Difference (+ or -) Electricity € 7, 000 € 8, 000 + € 1, 000 Telephone € 8, 500 € 7, 800 - € 700 Stationery € 1, 700 € 1, 900 + € 200 Maintenance € 6, 000 € 4, 800 - € 1, 200

Q 8 (cont) Actual overheads greater than budgeted Possible reason Electricity An increase in the unit cost of electricity after budgeting Stationery A greater volume of correspondence than anticipated Actual overheads less than budgeted Possible reason Telephone An increased use of the Skype system resulted in lower cost Maintenance A reduction in the number of maintenance employees

Q 9 page 201 Budget Comparison Statement for January – June 2011 Overhead Budgeted cost Actual cost Difference (+ or -) Wages € 25, 000 € 30, 000 + € 5, 000 Advertising € 4, 200 € 3, 500 - € 700 Stationery € 6, 000 € 5, 000 - € 1, 000 Interest on deposits € 1, 200 € 1, 500 + € 300

Q 9 (cont) Actual overheads greater than budgeted Possible reason Wages rates increased after the budget was drawn up Interest on deposits Interest rates had increased after the budget was drawn up Actual overheads less than budgeted Possible reason Advertising Costs decreased due to competition between the various media Stationery Amount of stationery used decreased due to more use of email