Petty Cash Fund (Including Accounting for Shortage/Overage) – Source: Yt

 Petty Cash Fund : cash segregated for small expenses

IMPREST FUND FLUCTUAING FUND

- General Rule: Petty Cash Balance is FIXED - General Rule: Petty Cash Balance is NOT FIXED
- Exclusion to the GR:
 via Replenishment; when Replenishment - Expense is recorded:
Amount is not equal to Expense  DURING incurrence
 Expense is incurred without
replenishment

- When is expense recorded:

 DURING Replenishment or Balance Sheet
Date ONLY
 not on incurrence of expense

NOTES TO REMEMBER:

 Issued to petty cash custodian = means REPLENISHMENT

ACCOUNTING FOR SHORTAGE/OVERAGE

1ST METHOD: compare per record vs. per count

2nd METHOD: Per accountability vs. per count

 Per accountability : anything you PUT INSIDE the petty cash box
 Per count: things you have SEEN INSIDE when you checked the petty cash box