Problem
AB Ltd. established a petty cash fund for $2,780. It replenishes the fund at the end of each month when financials are prepared or sooner if required. The company finds that it is replenishing the fund more than once a month so it decides to increase the fund size by 50%. At the time of this decision there are $1,300 in expense vouchers in the firm, so the firm replenishes and increases the fund size in the same journal entry.
• How much is the cheque written to do this transaction?