LESSON 5-4
Petty Cash
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2
PETTY CASH
page 138
 An amount of cash kept on hand and used for making
small payments
 Makes small payments time and cost effective
 Amount of money varies from one business to
another
 Petty cash account is an asset with the same
properties as cash
 Check is written (as the source document) to
establish the petty cash fund
 Money is put in a locked petty cash box
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 5-4
3
ESTABLISHING A PETTY CASH FUND
page 134
August 19. Paid cash to establish a petty cash fund, $100.00.
Check No. 8.
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1
4
3
1.
2.
3.
4.
Write the date.
Write the title of the account debited. Record the amount debited.
Write the title of the account credited. Record the amount credited.
Write the source document number in the Doc. No. column.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 5-4
4
PETTY CASH SLIP
 A form showing proof of a petty cash payment
 Used each time a small payment is made from the
petty cash fund
 Have to have evidence of the money leaving the business
 Slips are left in the petty cash box until the fund is
replenished
 Journal entries are not made for individual petty cash
payments
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 5-4
5
MAKING PAYMENTS FROM A PETTY CASH
page 135
FUND WITH A PETTY CASH SLIP
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 5-4
6
REPLENISHING PETTY CASH
page 136
August 31. Paid cash to replenish the petty cash fund, $30.00:
miscellaneous expense, $20.00; advertising, $10.00. Check No. 12.
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1
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1. Write the date.
2. Write the title of the first account debited. Write the debit amount.
Write the title of the second account. Record the debit amount.
3. Write the title of the account credited. Record the credit amount.
4. Write the source document number in the Doc. No. column.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 5-4