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    utasky's Avatar
    utasky Posts: 1, Reputation: 1
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    #1

    Sep 18, 2010, 07:26 AM
    Petty cash fund record in general journal
    Hi, everyone,I have a question:two transactions
    1/01 paid $10for fare, authorised by kelly,
    31/01 issued petty cash reimbursement. How to record these two transactions in general journal?
    Thanks in advance
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Sep 18, 2010, 02:42 PM

    1/01 no entry required.
    1/31 Debit appropriate expense account and Credit Cash for the amount.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Sep 18, 2010, 08:42 PM

    The end-of-month entry isn't that simple. You have to look at where all the charges went. You don't record them as you go. You wait until month-end and then add everything up and reimburse the pretty cash fund.

    So you could have several debits with a combination of expenses or assets, or other costs. You credit the cash for the amount missing from pretty cash. i.e. the amount you need to get it back up to the full amount it should be. If it's supposed to be $100 and you have $20 in there, then you need $80 to bring it back up to $100.

    If there are any differences between those two amounts, it goes into Cash Short & Over, which can be a debit or credit - just do whichever makes your entry balance.

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