200 Cash on Hand (Petty Cash)

Assets

Cash and Contracts

Synopsis

Account 200, is established to record the amount of Cash kept at the dealership to provide change to customers and pay incidental bills, which are too small to warrant issuing a check.

Debits

Credits

The amount set aside when the fund is established
The amount added to increase the fund

The amount removed to decrease the fund

Example 1

Record a check for the amount of $400 to establish a petty cash fund at the dealership.

Journal: Cash Disbursements and Purchases

Entry:		Debit	Credit
Account 200	Cash on Hand (Petty Cash)	$400
Account 202	Cash in Bank		$400

Example 2

Record petty cash summary and reimbursement of $280 to the Petty Cash Fund.

Journal: Cash Disbursements

Entry:		Debit	Credit
Account 061-05	Other Supplies	$30
Account 075-01	Training Expense	$85
Account 033-09	Postage/Freight	$15
Account 013-01	Delivery Expense	$25
Account 070-09	Travel and Entertainment	$225
Account 202	Cash in Bank		$280