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Journalizing Petty Cash and using the Cash Payments Journal

Journalizing Petty Cash and using the Cash Payments Journal. Petty Cash. Petty Cash enables businesses to pay cash for small expenses where it is not practical to use other forms of payment. A Petty Cash report is prepared to help determine when the fund is to replenished.

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Journalizing Petty Cash and using the Cash Payments Journal

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  1. Journalizing Petty Cash and using the Cash Payments Journal

  2. Petty Cash Petty Cash enables businesses to pay cash for small expenses where it is not practical to use other forms of payment. A Petty Cash report is prepared to help determine when the fund is to replenished. When there is more cash on hand than recorded in the Petty Cash journal it is referred to as Cash Over. When there is less cash on hand than recorded in the Petty Cash Journal it is referred to as Cash Short.

  3. Petty Cash Account in the Cash Payments Journal Cash Short or Cash Over are recorded in an account titled Cash Short or Over. The amount can be recorded as either a debit or a credit. Most often, the account is a debit because the amount on hand is typically short than it is over. View 18.3 Activities

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