CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 5-4LESSON 5-4

Petty Cash

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Activating StrategyActivating Strategy

Picture yourself working in a business that uses checks for all cash payments. What would happened if a girl scout came skipping along selling boxes of cookies and the owner said to purchase a box for the office?

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LESSON 5-4

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

NotesNotes

Petty Cash An amount of cash kept on hand for small payments Asset

Petty cash slip Form used to show the purpose of the expenditure

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LESSON 5-4

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Notes continuedNotes continued

Establish FundDr: Petty Cash

Cr: Cash

Replenish FundDr: all accounts needed

Cr: Cash

Petty Cash Proof (needs to be done before replenished)Amount remaining in Fund

+ Total Amount on petty cash slips

=petty cash fund

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LESSON 5-4

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-4

1. Write the date.

ESTABLISHING A PETTY CASH FUNDESTABLISHING A PETTY CASH FUND page 134

August 19. Paid cash to establish a petty cash fund, $100.00. Check No. 8.

2. Write the title of the account debited. Record the amount debited.

3. Write the title of the account credited. Record the amount credited.

4. Write the source document number in the Doc. No. column.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-4

MAKING PAYMENTS FROM A PETTY CASH MAKING PAYMENTS FROM A PETTY CASH FUND WITH A PETTY CASH SLIPFUND WITH A PETTY CASH SLIP page 135

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-4

1. Write the date.

REPLENISHING PETTY CASHREPLENISHING PETTY CASH page 136

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August 31. Paid cash to replenish the petty cash fund, $30.00: miscellaneous expense, $20.00; advertising, $10.00. Check No. 12.

4. Write the source document number in the Doc. No. column.

3. Write the title of the account credited. Record the credit amount.

2. Write the title of the first account debited. Write the debit amount. Write the title of the second account. Record the debit amount.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-4

TERMS REVIEWTERMS REVIEW

petty cash petty cash slip

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