Comments for Setting Up Petty Cash

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Sep 01, 2010
Petty Cash adjustment
by: Anonymous

I just took a new position with a company. I found that the former bookeeper entered the original petty cash account at $750.00. The owner just asked me to lower the account to $350.00 per month. I did a journal entry crediting petty cash to lower and debiting the checking account. Although this looks good on paper, does the owner need to hand the $350.00 in cash over to be deposited into the checking account? If so, how should we code that cash deposit? I dont want it to throw off the checking account when I go to reconcile.

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