money in the petty cash fund

money in the petty cash fund - When the money in the petty...

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When the money in the petty cash fund reaches a minimum level, the company replenishes the fund. The petty cash custodian initiates a request for reimbursement. This individual prepares a schedule (or summary) of the payments that have been made and sends the schedule, supported by petty cash receipts and other documentation, to the treasurer's office. The receipts and supporting documents are examined in the treasurer's office to verify that they were proper payments from the fund. The treasurer then approves the request, and a check is prepared to restore the fund to its established amount. At the same time, all supporting documentation is stamped “paid” so that it cannot be submitted again for payment. To illustrate, assume that on March 15 the petty cash custodian requests a check for $87. The fund contains $13 cash and petty cash receipts for postage $44, supplies $38, and miscellaneous expenses $5. The entry, in general journal form, to record the check is: Postage Expense Supplies Miscellaneous Expense Cash (To replenish petty cash fund)
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Note that the reimbursement entry does not affect the Petty Cash account. Replenishment
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money in the petty cash fund - When the money in the petty...

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