Describe the set-up and accounting process for establishing a petty cash fund.

What will be an ideal response?


A check from the operating checking account is written for an amount that will cover petty cash needs for a time, and the check is cashed. The cash is secured (typically in a lock box). In the accounting ledger, the amount of the check to set-up the petty cash fund is a credit to the checking account cash balance and a debit to the petty cash account.

Health Professions

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Health Professions