1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5-4 Petty Cash

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Activating Strategy Picture yourself working in a business that uses checks for all cash payments. What would happened if a girl scout came skipping along selling boxes of cookies and the owner said to purchase a box for the office? 2 LESSON 5-4

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Notes Petty Cash An amount of cash kept on hand for small payments Asset Petty cash slip Form used to show the purpose of the expenditure 3 LESSON 5-4

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Notes continued Establish Fund Dr: Petty Cash Cr: Cash Replenish Fund Dr: all accounts needed Cr: Cash Petty Cash Proof (needs to be done before replenished) Amount remaining in Fund + Total Amount on petty cash slips =petty cash fund 4 LESSON 5-4

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 5-4 1.Write the date. ESTABLISHING A PETTY CASH FUND page 134 August 19. Paid cash to establish a petty cash fund, $100.00. Check No. 8. 2.Write the title of the account debited. Record the amount debited. 3.Write the title of the account credited. Record the amount credited. 4.Write the source document number in the Doc. No. column. 14 2 3

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 5-4 MAKING PAYMENTS FROM A PETTY CASH FUND WITH A PETTY CASH SLIP page 135

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 5-4 1.Write the date. REPLENISHING PETTY CASH page 136 14 August 31. Paid cash to replenish the petty cash fund, $30.00: miscellaneous expense, $20.00; advertising, $10.00. Check No. 12. 4.Write the source document number in the Doc. No. column. 3.Write the title of the account credited. Record the credit amount. 2.Write the title of the first account debited. Write the debit amount. Write the title of the second account. Record the debit amount. 2 3

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 5-4 TERMS REVIEW petty cash petty cash slip page 138