custodian
The custodian of petty cash should sign the receipt to indicate that he authorized the funds. However, you should also have the recipient sign the receipt. This makes it easier to follow the paper trail if there is a dispute about the amount dispensed from petty cash or the purpose for which it was used.

How do you use petty cash receipts?

Put your petty cash policy in writing and offer some examples of appropriate expenses. For example, petty cash may be used to purchase additional postage, paper towels, coffee, or other basic office supplies. You can also mandate that all petty cash transactions be under a certain dollar amount, like $25.

What is petty cash used for?

Petty cash or the petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check or using a credit card. In larger corporations, each department might have its own petty cash fund.

Where is petty cash recorded?

Petty cash appears within the current assets section of the balance sheet. This is because line items in the balance sheet are sorted in their order of liquidity. Since petty cash is highly liquid, it appears near the top of the balance sheet.

What does petty cash slip mean?

A petty cash voucher is a standard form used as a receipt whenever cash is withdrawn from a petty cash box. The voucher is typically purchased from an office supply store. It is a physically small form, since it must fit within the petty cash box or drawer.

How do you reconcile petty cash?

How Do You Reconcile Petty Cash?

1. The petty cash reconciliation process starts by counting up the amount of cash on hand at the end of the financial period and using this as the ending balance for the petty cash account.
2. Next, receipts are reviewed and verified as appropriate and complete.

What do you need to know about a petty cash receipt?

A petty cash receipt is a form used to document cash payments from a petty cash box. The form is filled out by the petty cash custodian, documenting the reason for a petty cash payment and the amount of the payment, as well as the date. At a minimum, it is signed by the custodian, and preferably also by the cash recipient.

How does petty cash accounting work in accounting?

Petty cash accounting. The petty cash custodian then disburses petty cash from the fund in exchange for receipts related to whatever the expense may be. There is no journal entry at this point; instead, the cash balance in the petty cash fund continues to decline, while the number of receipts continues to increase.

What are the journal entries for petty cash?

The petty cash journal entry is a debit to the petty cash account and a credit to the cash account. The petty cash custodian refills the petty cash drawer or box, which should now contain the original amount of cash that was designated for the fund. The cashier creates a journal entry to record the petty cash receipts.

What happens when Petty Cash is disbursed?

The petty cash custodian then disburses petty cash from the fund in exchange for receipts related to whatever the expenditure may be. There is no journal entry at this point; instead, the cash balance in the petty cash fund continues to decline, while the number of receipts continues to increase.