This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 2009-09-231PETTY CASHWhat is Petty CashcPetty Cash is an asset account set up by companies to handle low value transactions.cThe employee in charge of petty cash will hold a small amount of money and will reimburse others for minor costs.cOnce the funds run low, the petty cash holder will submit receipts to the company’s accountant to get the funds replenished.2009-09-23Petty Cash Topic Slides22009-09-2322009-09-23Petty Cash Topic Slides3Petty CashACCOUNTING FOR PETTY CASH:cTo establish a petty cash account:Debit Petty Cash (asset)Credit CashcEnd-of-period adjustment when some of the petty cash is used:Debit Various ExpensesCredit CashcNote:Once the petty cash fund is established, no otheraccounting transactionsrun through the Petty Cashaccount (unless the fund’s level is increased).2009-09-23Petty Cash Topic Slides4Petty Cash ExercisecAfter signing yet another cheque made out for an amount less than $50, Ann Marie Kemberling realized her growing company, Star Supplies, would need to create a petty cash fund. would need to create a petty cash fund....
View Full Document
This note was uploaded on 11/09/2010 for the course BUSINESS 2257 taught by Professor Iandunn during the Fall '10 term at UWO.
- Fall '10
- Financial Accounting