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The cash over and short account is an account that keeps a record of any discrepancies between the expected cash on hand and the actual cash on hand During march, the following petty cash receipts were found in the petty cash box If a company has more cash on hand than what.
A $161 petty cash fund has cash of $36 and receipts of $112 The fund was established on march 1 with a balance of $105 The journal entry to replenish the account would include a
Credit to cash for $125
B debit to cash for $112 Check your understanding of a petty cash fund in this worksheet and quiz These tools can be used to gauge your knowledge of what these funds can. There are cash expenses that are impractical if we issues check
Establishing petty cash fund is primarily intended for petty or small expenses Petty cash is a cash fund established by the company in regards to cases wherein there is an inconvenience in making payments by issuing a check In addition, petty cash is usually used for payments with smaller amounts. Petty cash is a little amount of money which is present in the company's office used to purchase, settle, disburse or reimburse some minor expenses
To keep a check and control on petty cash fund, petty cash vouchers are implemented.
In accounting, establishing a petty cash fund is to ensure that small, incidental expenses can be paid for quickly and efficiently without going through the normal accounts payable process. Horvath company uses an impress petty cash system
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