Answer:
The Journal entries are as follows:
(i) On March 1,
Petty cash A/c Dr. $105
To cash $105
(Petty cash balance)
(ii) During March,
Stamp inventory A/c Dr. $38
Freight out A/c Dr. $14
Misc. Expenses A/c (12+8) Dr. $20
Travel Expenses A/c Dr. $25
over / short A/c (105 -38-14-20-25-6) Dr. $ 8
To cash $105
(Petty cash received)
(iii) On March 20,
Petty cash A/c (190-105) Dr. $85
To cash $85
(Petty cash fund increased to $190)