Journal Entries

• [Imprest System] Establishment of Petty Cash Fund

  • debit petty cash fund
  • credit cash in bank
• [Imprest System] Payment of expenses out of the petty cash fund

  • NO ENTRY
• [Imprest System] Replenishment or increases of the fund

  • debit expenses
  • credit cash in bank
• [Imprest System] Year-end adjustment for petty cash fund

  • debit expenses
  • credit petty cash fund
• [Imprest System] Increase in petty cash fund

  • debit petty cash fund
  • credit cash in bank
• [Fluctuating System] Establishment of Fund

  • debit petty cash fund
  • credit cash in bank
• [Fluctuating System] Payment of expenses out of the petty cash fund

  • debit expenses
  • credit petty cash fund
• [Fluctuating System] Replenishment or increase of the fund

  • debit petty cash fund
  • credit cash in bank
• [Fluctuating System] Adjustments at the end of the reporting period

  • NO ENTRY
• [Fluctuating System] Decrease in fund

  • debit cash in bank
  • credit petty cash fund
• Cash count < Cash balance per book/record

  • debit cash short or over
  • credit cash
• It was found that the cash custodian is responsible for cash shortage

  • debit due from cashier
  • credit cash short or over
• No one if found responsible for cash shortage

  • debit loss from cash shortage
  • credit cash short or over
• Cash Count > Cash Balance per Book/Record

  • debit cash
  • credit cash short or over
• No once claims the excess cash found during cash count

  • debit cash over
  • credit miscellaneous income
• It was found that the cash custodian owns the cash overage

  • debit cash over
  • credit payable to cashier