Performing Additional Cash Payments Journal

OperationsChapter 9, Section 3

Petty Cash Review What is petty cash used for? Petty Cash Report

• Used to account for petty cash payments and show if cash is short or over.

• Cash Short: on hand is less than recorded amount• Cash Over: on hand is more than recorded amount

Cash Short and OverDebit

Cash Short

Cash Short and Over account is classified as an expense but really has no normal balance.

Credit

Cash Over

Petty Cash Report

2

6. Write the actual amount of cash on hand. 8

4

1

3

65

7

1. Write the date and custodian name.

2. Write the fund total.

3. Summarize petty cash payments.

4. Calculate and write the total payments.

5. Calculate and write the recorded amount on hand.

7. Subtract the actual amount on hand from the recorded amount on hand and write the amount.

8. Write the total of the replenish amount.

Replenishing a Petty Cash Fund

5 6

1. Date

2. Account titles

3. Check number

4. Expense amounts

5. Cash short as a debit; cash over as a credit

1

2 3

46. Total cash payment

Totaling, Proving, and Rulinga Journal Page

Special journals are proved and ruled• when a page is filled (not enough room for the next

entry).• always at the end of the month.

Must prove that debits equal credits!

Totaling, Proving, and Ruling a Cash Payments Journal Page to Carry Totals

Forward

2 34

5

1

71. Rule a single line.

2. Write the date of the last entry.

3. Write the words Carried Forward in the Account Title column.

4. Place a check mark in the Post. Ref. column.

5. Write each column total.

6. Prove debits equal credits.

7. Rule double lines.

6

Starting a New Cash Payments Journal Page

1

2 3 4

1. Write the journal page number.

2. Write the date of the total line on the previous page.

3. Write the words Brought Forward in the Account Title column.

4. Place a check mark in the Post. Ref. column.

5. Record the column totals.

5

Totaling, Proving, and Ruling a Cash Payments Journal at the End of a Month

23 4

1. Rule a single line.

2. Write the date (last day of the month).

3. Write the word Totals in the Account Title column.

4. Write each column total.

5. Prove debits equal credits.

1

6

6. Rule double lines.

5

Problems Work Together 9-3 (Text pg. 253)

On Your Own 9-3 (Text pg. 253)

Application 9-3 (Text pg. 261)

Application 9-4 (Text pg. 261)