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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.
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What is journal entry for fluctuating fund system?
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
Does the balance of the petty cash account increase when the petty cash fund is replenished?
No.
What is Fluctuating fund system?
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:
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.
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
What is the correct entry to replenish the petty cash fund?
Dr Bank Account Cr Petty Cash Account
WHAT IS the correct entry to replenish a petty cash fund?
Dr Bank Account Cr Petty Cash Account
Issued a check to establish a petty cash fund of 1400?
Debit Petty cash account 1400 Credit Cash account 1400
What is the problems of petty cash?
some time its subjected to theft. example;when some body wants petty cash fund
Entries are made to the petty cash account when?
When establishing the fund.
Who is responsible for holding the petty cash fund?
An Accountant or Accounts clerk is typically responsible for Petty Cash,
Explain Petty Cash Transactions?
Petty cash transactions are small, miscellaneous purchases or expenses. In business, there is usually a separate cash fund for this type of transaction.
