WebPetty Cash Fund – money set aside to pay small expenses which cannot be paid conveniently by means. of check. Two methods of handling Petty Cash Fund. a. Imprest … WebNov 3, 2024 · The amount kept in a petty cash fund varies for each business. For some, $50 may be sufficient. Others might have $200 in their petty cash fund. Petty cash funds typically depend on how frequently …

The following statements relate to the petty cash - Course Hero

WebIn establishing a petty cash fund, a check is written for the amount of the fund and is recorded as a debit to accounts payable and a credit to petty cash False When the petty cash fund is replenished, the petty cash account is credited for the total of all expenditures made since the fund was last replenished. False WebFluctuating fund system The system is called “fluctuating fund system” because the checks drawn to replenish the fund do not necessarily equal the petty cash … how do reactors work

Problem 6 PDF - Scribd

WebPetty cash is the cash on hand that company puts in the safe box for small expenses that require immediate payment. Management will set the float balance which depends on the frequency of small expenses. It should not be too low as it will increase the number of time that require replenishing. WebNov 29, 2024 · In this case the calculation of the replenishment amount is as follows. Cash to replenish = Fixed imprest amount - Cash held Cash to replenish = 100 - 25 Cash to replenish = 75. The imprest petty cash … WebTerms in this set (91) Petty Cash Fund. This fund is intended to defray small expenses like fare of the pouch or errand boy, emergency purchase of supplies in small amounts, or … how do reading glasses numbers work