October 30, 2016 admin

Cash

Office Management
CASH

CASH IN BANKS

As soon as bank statements for all bank accounts are received they must be reconciled immediately with the book records. The reconciliation should be prepared by an employee who has no responsibility for handling cash or recording cash receipts or disbursements.

 
BANK RECONCILIATION FORMAT
    Bank Reconciliation
  Account __________________
     Month Ending___________, 19___ 
 
  Balance per Bank Statement $  — 
  Add: Deposits not credited by bank (Note 1)
 $ —   
    Bank debits not entered in books (Note 3)       —          —   
        $  — 
  Deduct: Outstanding checks (Note 2)
 $ — 
    Bank credits not entered in books (Note 3)       —          —   
  Balance per Books      $  —   
————
     
  Notes:  
  (1) The date and amount of each deposit in transit should be listed. The only deposits in transit should be made at month end. The bank statement for the subsequent month should show these deposits as having been credited at the beginning of the subsequent month.
  (2) The date, check number and amount of each outstanding check should be listed. Checks outstanding over 90 days should be investigated. If necessary, such as when the payee cannot be located and the check remains outstanding over an extended period, a stop payment order should be issued to the bank. Replacement checks should be issued as necessary. Legal counsel should be consulted with respect to the proper handling of unclaimed wages, dividends, etc.
  (3) Bank debit and credit memos, if in order, should be entered in the books in the current or following month and not carried any longer than necessary as reconciling items.
PETTY CASH

The petty cash fund is a convenient means of disbursing cash for minor purchases and expenses. Petty cash funds should be kept under ledger control on an imprest basis; that is, the amount of the fund and the general ledger account balance remain constant even though actual petty cash on hand varies as a result of daily activity. Approval signature of a department manager on the petty cash voucher is authority to disburse funds within limits authorized for such expenditures.
PETTY CASH VOUCHER
Petty Cash Voucher
PETTY CASH SUMMARY

Amounts paid out of the fund should be reimbursed as necessary or at the end of the month by a check drawn on the general bank account. A petty cash summary envelope form, illustrated below, which lists the individual vouchers and account distribution, may be used to support the request for reimbursement.

Petty Cash Summary