Most companies would record this entry

Most companies would record this entry - remaining cash in...

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Most companies would record this entry—or any other entry that credits cash—in the cash  disbursements special journal, but the illustrations use the general journal to eliminate journal  columns that are not relevant to this discussion and to conform with this subject's presentation in  most textbooks. Whenever someone in the company requests petty cash, the petty cash custodian prepares a  voucher that identifies the date, amount, recipient, and reason for the cash disbursement. For control  purposes, vouchers are sequentially prenumbered and signed by both the person requesting the  cash and the custodian. After the cash is spent, receipts or other relevant documents should be  returned to the petty cash custodian, who attaches them to the voucher. All vouchers are kept with  the petty cash fund until the fund is replenished, so the total amount of the vouchers and the 
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Unformatted text preview: remaining cash in the fund should always equal the amount assigned to the fund. When the fund requires more cash or at the end of an accounting period, the petty cash custodian requests a check for the difference between the cash on hand and the total assigned to the fund. At this time, the person who provides cash to the custodian should examine the vouchers to verify their legitimacy. The transaction that replenishes the petty cash fund is recorded with a compound entry that debits all relevant asset or expense accounts and credits cash. Consider the journal entry below, which is made after the custodian requests $130 to replenish the petty cash fund and submits vouchers that fall into one of three categories....
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