Based on a company's policies, petty cash could be replenished periodically or when the balance drops below a certain level. For example, it might be company policy to replenish petty cash once a month or even once a month. More often, however, it will be company policy to keep the petty cash balance above a certain figure, say $100. Whenever the balance drops below $100, then it will be replenished.
No.
establishment of fund: petty cash fund xx cash in bank xx payment of expenses out of the petty cash fund: expenses xx petty cash fund xx
A company check in the amount of $219 would replenish the funds.
yes. the entry should be: petty cash fund debit cash in bank credit
Dr Bank Account Cr Petty Cash Account
No.
establishment of fund: petty cash fund xx cash in bank xx payment of expenses out of the petty cash fund: expenses xx petty cash fund xx
Debit whichever account you take the money from to put into petty cash.Example:transfer cash from checking to petty cashwrite check to deposit to petty cashorpetty cash fund is replenished at the end of each month so that that all expenses are recorded in the moth they are incurred. Debit general and credit cash.
Fluctuating fund system is handling petty cash fund wherein every expenses/voucher is debited directly with petty cash fund as a credit. The petty cash fund is debited only whenever there is a replenishment wherein the proforma entry is:
Generally petty cash funds range around 25 dollars for minor needs for a business such as pencils, other office equipment, or breaking bills early in the morning when a customer presents a large bill and you haven't had many customers yet. Most register drawers start off with 75 dollars assorted from 10s, 5s, Quarters, Dimes, Nickles and Pennies. At the end of the night, the petty cash fund is replenished if it was used. Most cases petty cash fund is not used.
A company check in the amount of $219 would replenish the funds.
yes. the entry should be: petty cash fund debit cash in bank credit
Dr Bank Account Cr Petty Cash Account
Dr Bank Account Cr Petty Cash Account
Debit Petty cash account 1400 Credit Cash account 1400
some time its subjected to theft. example;when some body wants petty cash fund
When establishing the fund.