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
No.
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:
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.
Petty cash transactions are small, miscellaneous purchases or expenses. In business, there is usually a separate cash fund for this type of transaction.
Petty cash fund is usually used in a business to make minor odd purchases, such as a sheet of postal stamps, an inkjet cassette, a pack of envelopes, etc.