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Custody of petty cash in a company should ideally be assigned to a trusted employee, typically in the finance or administrative department, who is responsible for managing and tracking the funds. This individual should have clear guidelines for usage, along with a system for documenting transactions to ensure accountability. Regular audits and reconciliations should be conducted to prevent misuse and maintain financial integrity. It's also advisable to have a secondary approval process for larger petty cash disbursements.
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When is the petty cash account debited?
The petty cash account is debited when a company establishes or increases its petty cash fund. This entry reflects the outflow of cash from the main cash account to the petty cash account. Additionally, it may be debited when replenishing the petty cash fund, as it accounts for the expenses incurred that were paid from petty cash.
Is the entry to establish a petty cash account a debit to petty cash and credit to cash?
yes. the entry should be: petty cash fund debit cash in bank credit
Who has custody of the petty cash box?
Custody of the petty cash box typically rests with a designated employee or manager within an organization, often the finance or accounting department. This person is responsible for overseeing the disbursement and replenishment of petty cash funds to ensure proper management and accountability. Access to the petty cash box is usually limited to authorized personnel to prevent misuse. Regular audits may also be conducted to maintain transparency and compliance with financial policies.
Difference between petty cash and main cash book?
cash book is the statement which contain's the total cash information . the information includes "cash in hand & cash at bank" petty cash book is maintain by company to meet their daily expenditure
What do you think about Just before lunch Sunil a petty cashier responsible for the petty cash book was asked by his manager for 30 from petty cash because he needed to buy some groceries and had no t?
It seems that the manager's request for petty cash raises concerns about the appropriate use of company funds. Typically, petty cash is meant for minor business expenses, and personal purchases like groceries should not fall under this category. If this practice is allowed, it could set a precedent for misuse of funds, potentially leading to financial discrepancies. It would be advisable for the company to establish clear guidelines for petty cash usage to avoid such situations.
When is the petty cash account debited?
The petty cash account is debited when a company establishes or increases its petty cash fund. This entry reflects the outflow of cash from the main cash account to the petty cash account. Additionally, it may be debited when replenishing the petty cash fund, as it accounts for the expenses incurred that were paid from petty cash.
Is the entry to establish a petty cash account a debit to petty cash and credit to cash?
yes. the entry should be: petty cash fund debit cash in bank credit
Difference between petty cash and main cash book?
cash book is the statement which contain's the total cash information . the information includes "cash in hand & cash at bank" petty cash book is maintain by company to meet their daily expenditure
What are the advantages of a Imprest system for petty cash?
An Imprest system of petty cash is used for more control over cash in hand. In an Imprest system, the amount in hand plus the amount of all receipts should be equal to petty cash balance. If at any time cash in hand and receipts do not equal the fixed amount of petty cash, then investigation should be done about the discrepancy.
If a petty cash fund was established with a 250 balance and currently has cash of 31 and petty cash tickets totaling 219 what would be included in the entry to replenish the fund?
A company check in the amount of $219 would replenish the funds.
When is petty cash fund always replenished?
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.
What is the similarity of cash book and petty cash?
petty
When petty cash falls under the accounts payable umbrella what guideline should be set?
when petty cash falls under the accounts payable umbrella, what guidlines should be set?
What are the difference of petty cash voucher and petty cash book?
petty cash voucher is released by the handler of the funds to support every payments made. petty cash book contains a summary of all petty cash disbursements, its total and the balance.
What is petty cash receipt?
A petty cash receipt is an invoice or receipt for items or services bought out of petty cash. Petty cash is the small amount of cash usually held by businesses for one off small items.
Analytical petty cash book?
The petty cash book which is prepared in columnnor form is called anylatical petty cash book
What is called as petty cash book?
petty cash book is the book which is used for the purpose of recording the payment of petty cash expenses.
