Out Of This World Petty Cash Fund In Balance Sheet

Each month accountants or other employees will need to balance petty cash and replenish the funds.

Petty cash fund in balance sheet. Therefore the net amount of the accounts receivable that is. No other funds should be co-mingled with the petty cash fund. A petty cash fund will undergo periodic.

The purpose of a petty cash worksheet is to help the petty cash holder to check if there is a balance in the fund or not. Petty cash fund is a fixed sum of money for the purpose of making cash payments for small purchases where more formal procurement or payment actions would be uneconomical. The form is to be used to summarize purchases and request replenishment of the fund.

The hierarchy for petty cash will be like this in the balance sheet. A petty cash fund is a small amount of cash kept on hand in a locked drawer or box to pay for minor expenses such as office supplies or reimbursements. The petty cash amount may appear as the first or second item listed in the current asset section of the balance sheet.

Petty cash also known as imprest cash is a fund established for making small payments that are impractical to pay by check. Examples include postage due reimbursement to employees for small purchases of office supplies and numerous similar items. Petty cash appears within the current assets section of the balance sheet.

There are two requirements for the petty cash fund case. This is because line items in the balance sheet are sorted in their order of liquidity. Remember for all journal entries whole debits should equal whole credits.

However the petty cash amount might be combined with the balances in the other cash accounts and their total reported as Cash or as Cash and cash equivalents as the first current asset. The fund should not be used for travel-related expenditures ie. To permit these cash disbursements and still maintain adequate control over cash companies frequently establish a petty cash fund of a round figure such as 100 or 500.