1. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-4 Petty Cash Create a Petty Cash Account Prepare Petty Cash Slips Replenish Petty Cash and create journal entries

2. CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 5-4 ESTABLISHING A PETTY CASH FUND page 134 August 17. Paid cash to establish a petty cash fund, $100.00. Check No. 8. Wrote check #8 to establish a Petty Cash Fund.

3. CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 5-4 MAKING PAYMENTS FROM A PETTY CASH FUND WITH A PETTY CASH SLIP page 135 As money is taken from the Petty Cash fund to pay for small items, a Petty Cash slip is completed and put in the Petty Cash “box”.

4. CENTURY 21 ACCOUNTING © Thomson/South-Western 4 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

5. CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 4-2 Replenish Petty Cash What is result with T Accounts? Miscellaneous Expense Cash 20.0030.00 10.00 Advertising Expense Wrote check #12 to replenish Petty Cash. Petty Cash slips indicated $20 spent on Misc Exp; $10 spent on Advertising.

6. CENTURY 21 ACCOUNTING © Thomson/South-Western 6 LESSON 4-2 Replenish Petty Cash What happens if Cash is over or short? Miscellaneous Expense Cash 20.0035.00 10.00 Advertising Expense Wrote check #12 to replenish Petty Cash. Petty Cash slips indicated $20 spent on Misc Exp; $10 spent on Advertising. Cash count in Petty cash box is $65 and should be replenished to equal $100. Journal Entries: DebitMisc Expense20.00 DebitAdvertising Expense10.00 DebitCash Over/Short 5.00 CreditCash35.00 Cash Over/Short 5.00