Petty Cash

I've just started in my new job and did not set up the original petty cash account.    Now I need to replenish my petty cash box but not sure how to post all the receipts and then cut the cheque to replenish it.   I have a petty cash account that shows a total of $300DR.   Am I correct in assuming I do a J/E posting the receipts as debits to the individual accounts (like office supplies etc) and crediting petty cash.       Once that J/E is done how do I set up and post the cheque to replenish my petty cash box?

I also have receipts that total more than the original amount for Petty Cash.  My receipts equal $400 but my petty cash shows $300.  

Thanks.

Vivienne

Parents
  • 0

    credit a supplier 'petty cash' with the correct tax options, GST or GST included - to ease input

    you can use 'pay expenses' by cash, from the petty cash account to record accounts/amounts/taxes

    you can also use 'pay expenses' by cheque from chequing account to account = petty cash to replenish

  • 0 in reply to Roger L

    Here is another way to handle Petty Cash. The cheque to set up petty cash is a debit to the Petty Cash acct and a credit to the bank. Then I never touch the Petty Cash account again.

    When entering the petty cash vouchers I debit the appropriate expense account and credit the A/P account for the person getting the cheque to cash. Most of the time I do this monthly so I would enter each receipt that has been properly authorized on a single line in the purchase journal using the appropriate expense account for the line. When all receipts have been entered a cheque is cut for the amount due. Once the cheque is cashed and the Petty Cash can is replenished the total in the can should total the amount in the Petty Cash account in the financial records.

    This way when a review of petty cash is done you know from the financial records exactly how much is to be in the petty cash can and this would be the total of all cash plus all receipts.

    When the receipts are turned in for reimbursement they are handled just like any other vendor's account and all taxes are properly recorded.

  • 0 in reply to Alwyn

    You can make the Vendor name as Petty Cash and that will be acceptable by the bank to cash in.

Reply Children
  • 0 in reply to Smith and Co

    Same Banks, different branches - we use to use a Petty Cash vendor. Lately I have had cheques refused by branches in the Toronto area when there is not a name as payee. Some of the branches won't even allow a deposit to a personal account unless you are named on the account. I tried to deposit my clergy's pay cheque into his account with his permission while he was on holidays and the deposit was refused. Strange actions but it is the call of the branch manager according to the Ombudsman for the bank.