October 30, 2016 admin

Petty Cash

Assets

PETTY CASH ASSET ACCOUNT
1000

ACCOUNT EXPLANATION
Cash on hand in a small permanent loaned fund to be used for minor expenditures and for change.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Check issued to establish or increase petty cash fund CD
  Petty Cash 1000
  Cash in Bank—General 1001
           
  Check issued to reimburse petty cash fund for stamps, miscellaneous shop supplies, and small freight charges CD
  Office Supplies 8640
  Tools & Supplies—Service   7770  
    Freight—Parts   7671  
      Cash in Bank—General 1001
COMMENTS
  • Each petty cash payment should be supported with a petty cash voucher prepared in ink, signed by the recipient and bearing necessary approvals. Suppliers’ invoices should be attached to the petty cash voucher.
  • The sum of all petty cash vouchers on hand plus the unexpended cash should always equal the recorded balance in the account.
  • The petty cash fund should be reimbursed periodically and at month end by issuing a check payable to the fund custodian. A petty cash summary listing the paid vouchers should be prepared to support the reimbursement. All vouchers and invoices should be cancelled to prevent possible future misuse.
  • Payroll or payroll advances should not be disbursed from petty cash.