This document describes the accounting entries for two types of petty cash funds - a fixed or non-fluctuating fund and a fluctuating fund. It also provides the steps for reconciling the book and bank balances, including adjusting for items like deposits in transit, outstanding checks, and errors.
This document describes the accounting entries for two types of petty cash funds - a fixed or non-fluctuating fund and a fluctuating fund. It also provides the steps for reconciling the book and bank balances, including adjusting for items like deposits in transit, outstanding checks, and errors.
This document describes the accounting entries for two types of petty cash funds - a fixed or non-fluctuating fund and a fluctuating fund. It also provides the steps for reconciling the book and bank balances, including adjusting for items like deposits in transit, outstanding checks, and errors.
Entry for payment of expenses out of the fund: NO ENTRY
Entry for replenishment of petty cash payments:
Various Expenses xxx
Cash In Bank xxx
Total expenses + Available Fund xx
Less: Petty cash Fund established (Accountability) (xx) Shortage/Overage xx
Fluctuating Fund:
Entry for establishment of PCF:
Petty Cash Fund xxx
Cash In Bank xxx
Entry for payment of expenses out of the fund:
Various Expenses xxx Petty Cash Fund xxx
Entry for replenishment of petty cash payments:
Petty Cash Fund xxx Cash In Bank xxx
BANK RECONCILIATION:
Unadjusted Book Balance
+ Bank Credit Memo (Collection of payment from customers, interest earned) - Bank Debit Memo (NSF Check & Bank Service Charge) +/- Book errors Adjusted Book Balance
Unadjusted Bank Balance
+Deposit in Transit -Outstanding Checks +/- Bank Errors Adjusted Bank Balance