Accounting Chapter 9-3 Petty Cash

Cash Short

A petty cash on hand amount that is less than a recorded amount.

Cash Over

A petty cash on hand amount that is more than a recorded amount.

Cash Payments Journal

A special journal where all cash transactions are recorded.

Petty Cash

An amount of cash kept on hand and used for making small payments.

The Cash Short and Over account

For this account when journalizing, if you have a cash short balance you would then debit the account. If you have a cash over balance you then would credit the account.

Petty Cash account should not be

used for paying expenses in the thousands of dollars. Instead writing a check would be the most appropriate action.

Petty Cash Custodian

Person responsible for creating the Petty Cash Report.

Petty Cash T account

Petty Cash: Debit increases and has a debit normal balance, Credit side decreases.

Fund Total in the Petty Cash Report

The total amount the needs to be replenished.

General Journal

________________ is used to establish a Petty Cash fund.

Petty cash fund enables

a business to pay cash for small expenses without writing a check.