Chapter 9, Section 3

 What is petty cash used for?  Petty Cash Report Used to account for petty cash payments and show if cash is short or over. Cash Short: on hand is less than recorded amount Cash Over: on hand is more than recorded amount Cash Short and Over Debit Cash Short Cash Short and Over account is classified as an expense but really has no normal balance. Credit Cash Over

2 6.Write the actual amount of cash on hand Write the date and custodian name. 2.Write the fund total. 3.Summarize petty cash payments. 4.Calculate and write the total payments. 5.Calculate and write the recorded amount on hand. 7.Subtract the actual amount on hand from the recorded amount on hand and write the amount. 8.Write the total of the replenish amount.

56 1.Date 2.Account titles 3.Check number 4.Expense amounts 5.Cash short as a debit; cash over as a credit Total cash payment

 Special journals are proved and ruled when a page is filled (not enough room for the next entry). always at the end of the month.  Must prove that debits equal credits!

Rule a single line. 2.Write the date of the last entry. 3.Write the words Carried Forward in the Account Title column. 4.Place a check mark in the Post. Ref. column. 5.Write each column total. 6.Prove debits equal credits. 7.Rule double lines. 6

Write the journal page number. 2.Write the date of the total line on the previous page. 3.Write the words Brought Forward in the Account Title column. 4.Place a check mark in the Post. Ref. column. 5.Record the column totals. 5

Rule a single line. 2.Write the date (last day of the month). 3.Write the word Totals in the Account Title column. 4.Write each column total. 5.Prove debits equal credits Rule double lines. 5

 Work Together 9-3 (Text pg. 253)  On Your Own 9-3 (Text pg. 253)  Application 9-3 (Text pg. 261)  Application 9-4 (Text pg. 261)