Paid Cash to Establish a Petty Cash Fund
You need to record this check on the general ledger in a separate account called Petty Cash. In this transaction theres no expense involved. Solved Question Assets Transactions Coa Transactions Arg Chegg Com Limits discretionary spending and preventing small purchases from snowballing into a significant annual expense. . A good example of the usefulness of a petty cash fund is an employee who needs to ship a package from th. Contact us if you need help establishing a petty cash fund and its conditions. Prepare the journal entry to establish the petty cash fund. A small petty cash fund. Start a petty cash fund by writing a check drawn on your company to Petty Cash Cash the check. Decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. Delivery expense mileage expense postage expense merchandise inventory for transportation-in and office supplies expense. Redu...