Chapter 5.4 Establishing and replenishing a petty cash fund

when reimbursing the petty cash fund: This is a topic that many people are looking for. is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, would like to introduce to you Chapter 5.4 Establishing and replenishing a petty cash fund. Following along are instructions in the video below:

“54. Establishing and replenishing a petty cash fund before we get going. It s important important to understand what a petty cash fun is petty cash is used for small expenses by the best way to explain it so let s just say i run. A little concession.

Stand. And it s six o clock. At night and the game starts. At 7 00.

And i just happen to run out of straws well the only way i m going to get straws is i m going to be able to i m going to have to take some money out of petty cash run to the nearest grocery store and buy a bunch of straws. I m going to use petty cash for that and that s the purpose of petty cash for my four normal expenses. You re not going to use petty cash. But for for the beginning.

That s what you re going to be that s why you re using petty cash for these little miscellaneous expenses. Most businesses keep petty cash you know i would say under five hundred it depends on the type of business that you deal with. But you know this the less the lower amount of petty cash. The better.

But it all depends on what you re doing so one of things too is we want to we don t talk about establishing and replenishing a petty cash fund. Well let s take a look at that first transaction paid cash to establish a petty cash fund. Now what we re doing here is basically we are starting a petty cash fund. So if you think about a petty cash box.


If you re looking at a box right now right now. There is no money in that petty cash box you need to take cash from your regular account write a check and bring it into your petty cash account. So what we re going to do is we are going to then write the date. And what are we going to we re going to write a check so let s journalize it how do we write a petty.

How do we write i m going to write a check to petty cash. What account a we re going to use petty cash now. It s important to note. In this transaction.

You see the turn you see the wording establish a petty cash fund. That is that should be an indicator to you that that s the only time you are going to use the account title petty cash is when you first start it and you establish it otherwise you are never going to use petty cash on any other when you re replenishing in petty cash once. When you establish you only you petty cash. Let s see here.

A document numbers check 527. So basically the banker wrote. A check and gave it to the petty cash manager and they took it and they cashed it and now they have 500 in that box that petty cash box per se in which they can pay for miscellaneous expenses while petty cash is an asset. So therefore.

It has a normal balance of a debit and therefore. It has a double bounce. Now what do what do we have less of all we actually have less of cash. We re going to credit cash on this transactions.


Because remember the banker wrote a check so we re basically moving cash from one cash account to a different cash account and that s how you establish it keep in point unless. It says establish petty cash you re not going to use petty cash. If it says established petty cash. Then that s when you will only use the account title petty cash.

So let s take a look here so that month went on so that was november fifth we opened it while november 30th well we had a pretty busy month. We bought supplies with our petty cash. We bought had some miscellaneous expenses. We had some repairs we had postage and all that different types of stuff so now what we need to do is we need to at the end of the month.

It s kind of like a gas tank in a car you drive your car for hopefully a month but probably more like a week it gets empty what do you have to do you have to replenish your car by putting more gas into it well we basically need to do the same thing with our petty cash fund now in order for us to replenish our petty cash fund. What we need to do is we need to list the expenses or in the terms of a car. We need to basically okay share. Our routes and our miles that we had so let s take a look here so we want to put the date november 30th first thing you re going to do is when you re when you re replenishing a petty cash is you want to list all the expenses.

Remember we want that objective evidence because if you go back looking for more money to replenish the petty cash fund. That that accountant. And that banker is going to go well. What did you use the money for well.

This is what you need to show you used it for so we used it for supplies. And this is coming from c55 and we bought 38 with the supplies. We had a miscellaneous expense. Which was 67 and that can be anything remember we re using the miscellaneous expense title because we this is an expense.


It doesn t happen very often we re going to have repairs and for 20. And we also had a posted success bench for 15 now if you add them up we re going to ask for one check. So we re going to add them all up together and we re going to get we are going to credit our cash for a hundred and forty dollars now the reason why we are not writing a member we re writing a check back to our petty cash manager. The reason why we don t write four different checks is because we only need one check to replenish the kitty petty cash fund.

So that s why on the right hand side my cash credit column you don t see a 38. A 67. A 20 and a 15 rather you just see a hundred and 40 that s because we re writing one check to replenish it so then now our petty cash is back to 500 and they can start the next month. And rian pathfinders god ngold and glory perfectly described their ambitions.

Although perhaps not in that order hopping the islands along the african coast nand using the trade winds columbus s ships made it to the caribbean nislands and his crews. Which tellingly included both nclergy and bankers found signs of gold but not great quantities nof. It however they did find people to enslave nand. Because no one knew the size or shape of the americas nthere was the perpetual hope that gold or other riches.

Nmight lie just on the other side of this river or that mountain thanks thought bubble. So i want to stop here to shift perspective nfrom. The perspective of european explorers. These lands were new and potentially very nlucrative and the colonization model that spain adopted and that portugal.

Began using nin. Brazil. And that the rest of europe s empires. Would eventually use was built on nthe idea that colonies existed for the benefit and enrichment of the colonizers and secondarily nto convert human souls to christianity much of the wealth that was generated by these nempires was done so by claiming human beings as a form of property both through the slave ntrade and through forcing colonized people to work and the systems that were built to support nthe colonies from roads and bridges to churches were built to extract wealth and convert people nto christianity.


So from the perspective of indigenous people nliving in colonized communities colonization meant impoverishment in many forms the loss nof land for use the loss of life itself at an unprecedented scale. The loss of long held nreligious beliefs and the loss of all sorts of community assets. But from the colonziers perspective. It nmeant the possibility of getting rich and so waves of ambitious sailors.

Followed columbus nsearching. Both north and south america for extractable wealth ok. Another breakthrough occurred in 1519 22. Nwhen ferdinand magellan s spanish ships circumnavigated.

The globe magellan had alienated members of the portuguese ncourt and like columbus. He found no backing for his proposed trip. There also like columbus he went to spain to fund nhis voyage. If you were going to be somewhere between n1519 and 1522 on one of magellan s ships was not necessarily the best.

Placethe conditions nand magellan s no nonsense discipline caused mutinies and other problems which magellan nalso handled harshly executing or marooning mutineering captains in the fleet. But after finding the straits at the tip of nsouth america. The fleet set out across the pacific eventually returning to spain despite nmagellan s death at the hands of local leaders in the philippines in 1521 of the 237 ” ..


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