WHAT IS PETTY CASH ?
Petty cash involves the following terminology: custodian the person entrusted with the petty cash money. replenish to get the petty cash custodian’s currency and coins to be equal to the amount reported in the general ledger account Petty Cash. This is done by writing a check drawn on the company’s regular checking account. cash account the general ledger account that reflects the company’s balance in its regular checking account. petty cash account the general ledger account that reports the amount in the petty cash fund. imprest a fixed amount such as a balance of Rs.5000 in the general ledger Petty Cash account; at all times the petty cash custodian should have a combination of cash and petty cash receipts equal to the imprest amount. cash short and over an income statement account used to report the shortages or overages that appear when the petty cash fund is replenished.
Petty cash involves the following terminology: custodian the person entrusted with the petty cash money. replenish to get the petty cash custodian’s currency and coins to be equal to the amount reported in the general ledger account Petty Cash. This is done by writing a check drawn on the company’s regular checking account. cash account the general ledger account that reflects the company’s balance in its regular checking account. petty cash account the general ledger account that reports the amount in the petty cash fund. imprest a fixed amount such as a balance of Rs.5000 in the general ledger Petty Cash account; at all times the petty cash custodian should have a combination of cash and petty cash receipts equal to the imprest amount. cash short and over an income statement account used to report the shortages or overages that appear when the petty cash fund is replenished.
very useful and easy to learn in very less time
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