#3 – Replenishment. Replenishment: When the fund balance is reduced after meeting the expenses, the petty cash accountant will raise a request to replenish the petty cash … • Demo of Petty Cash Voucher Entry • Review • Training Materials. Petty cash boxes should be kept out of sight in a closed drawer. Store the petty cash box. (1) To setup your petty cash fund, write a cheque and code it: Debit (Increase) Petty Cash (current asset account on the balance sheet) Credit (Decrease) Cash in Bank (current asset account on the balance sheet). Petty cash replenishment — If the petty cash balance is running low the cash will be … Under the system, the petty cash fund balance is always maintained at a fixed amount decided on when the fund is first established.. During an accounting period petty cash is used to pay cash expenses which are supported by petty cash vouchers.At the end of the period a petty cash reconciliation is carried … To Bank A/c xxxx. Contra – Petty Cash A/c Dr. xxxx. All entries to reimburse the petty cash are charged to an operating account, not the original petty cash account. Take cash out. Petty Cash Overview • You’ll enter a campus voucher to request replenishments of: If you took out the cash without writing a check: Select + New. Select Petty Cash as the payee. Remember this is petty cash so by definition the float amount is usually $100 or less. Replenish the petty cash fund: Take this action when you cannot get through the day with the petty cash you have on hand. The imprest petty cash system is a method of accounting for petty cash expenses. Select Transfer. It is a) true that an entry to replenish a petty cash fund would include a debit to Petty Cash. The combination or key to open the box should be kept in … The drawer needs to be in the custodian's desk or another drawer that is easy for the custodian to get to. To add money to Petty Cash, make a deposit and choose Petty Cash. Importance of Having a Petty Cash Log. A single journal entry will be added at the end of the day or after a period for the total payments made from the petty cash. Petty Cash should be set up as a "checking type account." During April 2016, following disbursement were made from cash … Select +Add new if petty cash isn't in the list of payees. This account is not changed unless there is a change in the value of the petty cash/cash drawer. Course Objectives At the end of this course, you will be able to: • Understand the petty cash replenishment process • Request petty cash replenishment using a campus voucher. In all kinds of businesses, it would be very important to have your own petty cash log to monitor and record all your transactions.Especially when dealing with smaller amounts, which could go unnoticed, having a log or a record would allow you to keep track of everything as the small amounts pile up. When you give cash to an employee or use petty cash yourself, record it with a slip of paper to track who, when, and what the money was used for. The accounting records will show the following bookkeeping entries when the business withdraws cash to replenish the petty cash fund. If cash balance becomes very low, then it is replenished via cheque. Petty Cash Accounting Example : XYZ LLP creates a petty cash fund of $15,000/- on 1 Apr 2016. Here is a video of the petty cash process and then we will review the steps in detail. The cashier creates a journal entry to record the petty cash receipts. To subtract money from Petty Cash, write a check (don't print one, just record it as being written.) Some companies keep only $30 in the fund, while others keep up to $300 or more. This initial setup amount is sometimes referred to as your float. Accounting Entry. Used to replenish the cash in the petty cash account. Choose the amount based on the expenditures you need to cover each month out of petty cash. The journal entry will contain the breakup of the total cash payments.