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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 companys 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 funds 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....
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- Fall '10
- Financial Accounting