Liquidating petty cash advances

18-Sep-2020 18:07

A reimbursement request must include the department, each receipt along with the corresponding accounting code to be applied against.Overage and shortages must be applied against the appropriate account as well.Usually a custodian is appointed to administer the petty cash and it is his/her duty to account for the expenses incurred out of petty cash fund.Whenever the custodian makes any payment from the fund to an employee or a customer etc., he or she must record the amount being disbursed, the name of the person to whom the payment is being made and the reason for the disbursement.CLOSING PETTY CASH FUND When petty cash is no longer needed for a department the fund should be closed by reimbursing the fund as outlined above and then the account should then be returned to accounting providing a credit back to the original account withdrawn from.

SECURING THE PETTY CASH ACCOUNT The manager assigned is in charge of ensuring the security of petty cash money held by their respective department.

Net income is automatically computed, but one entry from earlier has a debit to Net Income - to close nominal accounts. The alternate of reversing net income is to close all nominal accounts associated with it.

Without doing this it leaves RE and Net Income on the Balance Sheet. In order for me to elaborate more accrurately, I need to see your Income Statement. Total COS 21340.24Gross Profit 16563.46 Supplies 40.88Bank Charges 58.00Insurance 303.75Utitlites 216.99Communication 3448.56Dues & Subscr. I am still a little confused, this is a livestock auction and it gets paid commission based on total sales.

All cash and vouchers for expenditures must be held in a locked cash safe box with access limited by a key held by the manager.

liquidating petty cash advances-21

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The manager in charge is responsible for the petty cash thus access to the funds must be always held in the safe box.This should include the manager's name, department, date and signature.