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LESSON 9-3

LESSON 9-3. Performing Additional Cash Payments Journal Operations. 9-2 APPLICATION. Why Petty Cash?. Petty cash allows a business to pay for small expenses without writing a check for them. Errors may be made when making payments from a petty cash fund.

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LESSON 9-3

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  1. LESSON 9-3 Performing Additional Cash Payments Journal Operations

  2. 9-2 APPLICATION LESSON 9-3

  3. Why Petty Cash? • Petty cash allows a business to pay for small expenses without writing a check for them. • Errors may be made when making payments from a petty cash fund. • This causes a difference between actual physical cash on hand and the written record of cash that should be on hand. LESSON 9-3

  4. Petty Cash Errors • Petty cash on hand that is less than a recorded amount is called cash short • A petty cash on hand amount that is more than a recorded amount is called cash over. LESSON 9-3

  5. Cash Short or Over Cash Short or Over is classified as an expense LESSON 9-3

  6. PETTY CASH REPORT page 248 LESSON 9-3

  7. REPLENISHING A PETTY CASH FUND page 249 1. Date 2. Account titles 3. Check number 4. Expense amounts 5. Cash short as a debit; cash over as a credit 6. Total cash payment 4 5 6 1 3 2 LESSON 9-3

  8. 1 6 TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL PAGE TO CARRY TOTALS FORWARD page 250 4 2 3 5 1. Rule a single line. 2. Write the date. 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. Rule double lines. LESSON 9-3

  9. 5 STARTING A NEW CASH PAYMENTS JOURNAL PAGE page 251 1 2 3 4 1. Write the journal page number. 2. Write the date. 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. LESSON 9-3

  10. 1 5 TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL AT THE END OF A MONTH page 252 2 3 4 1. Rule a single line. 2. Write the date. 3. Write the word Totals in the Account Title column. 4. Write each column total. 5. Rule double lines. LESSON 9-3

  11. 9-3 WT LESSON 9-3

  12. 9-3 WT Kevin Tomlinson is the custodian of a $200.00 petty cash account. On March 31, he had receipts for the following total payments: supplies-office, $45.23, supplies-store, $66.18, and misc. expense, $49.25. A petty cash count shows $40.49 in the petty cash box. Prepare a petty cash report. LESSON 9-3

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  14. LESSON 9-3

  15. 9-3 OYO

  16. LESSON 9-3

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