Alameda California Petty Cash Funds

Name: Alameda California Petty Cash Funds
Brand: US Legal Forms
Rating: 4.83 (482 reviews)

Category:

Small Business - Personal Business Forms

State:

Multi-State

County:

Alameda

Control #:

US-178-AZ

Format:

Instant download

Description

This form is a business type form that is formatted to allow you to complete the form using Adobe Acrobat or Word. The word files have been formatted to allow completion by entry into fields. Some of the forms under this category are rather simple while others are more complex. The formatting is worth the small cost.

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FAQ

The purpose of a petty cash fund is to provide cash to business units sufficient to cover minor expenditures. The use of petty cash funds should be limited to reimbursement of staff members and visitors for small expenses, generally not to exceed $50, such as taxi fares, postage, office supplies, etc.

Petty-cash funds are to be maintained on an imprest basis. The custodian/s should balance the fund each day to ensure that the available cash and the approved petty cash vouchers tally. Petty cash disbursements are limited to $50.00 or less per individual, per month.

The small amount of cash that a company considers petty will vary, with many companies keeping between $100 and $500 as a petty cash fund. Examples of transactions that a petty cash fund is used for include: Office supplies. Cards for customers.

The purpose of a petty cash fund is to provide business units with sufficient cash to cover minor expenditures. The intent is to simplify the reimbursement of staff members and visitors for small expenses that generally do not Exceed $25.00, such as taxi fares, postage, office supplies, etc.

To establish a petty cash fund, someone must write a check to the petty cash custodian, who cashes the check and keeps the money in a locked file or cash box. The journal entry to record the creation of a petty cash fund appears below.

Receipts from purchases must be retained with the fund to support the total amount of the Petty Cash Fund and the replenishment of the fund.

What Is Petty Cash? A petty cash fund is a small amount of company cash, often kept on hand (e.g., in a locked drawer or box), to pay for minor or incidental expenses, such as office supplies or employee reimbursements.

The petty cash log should include the date, details of the transaction, the cash you put into petty cash, the amount distributed, and a running balance. Once your running balance hits your replenishment amount, you're ready to write a check to bring the petty cash total back to the original funded amount.

The procedure for petty cash funding is outlined below: Complete reconciliation form. Complete a petty cash reconciliation form, in which the petty cash custodian lists the remaining cash on hand, vouchers issued, and any overage or underage.Obtain cash.Add cash to petty cash fund.Record vouchers in general ledger.

A petty cash book is maintained to record small expenses such as postage, stationery, and telegrams. A separate column is used for each type of expenditure. The difference between the sum of the debit items and the sum of the credit items represents the balance of the petty cash in hand.

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Alameda California Petty Cash Funds

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What are the limitations and restrictions of a petty cash?

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What should be entered in the petty cash book?

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