MGT 11A Chapter Notes - Chapter 6: Petty Cash, List Of The Shield Episodes, Bank Statement
Document Summary
Keys to controlling cash disbursements: require all payments to be made by check. Deny access to accounting records to anyone other than the owner who has the authority to sign checks. Voucher system: set of procedures and approvals designed to control cash disbursements and the acceptance of obligations. Ex: when a company receives a monthly telephone bill, it should review the charges, prepare a voucher (file), and insert the bill. Transaction is recorded and if amount is due, a check is issued. If not due, a voucher is filed for payment on its due date. Operating a petty cash fund requires estimating the amount of small payments to be made. Check is drawn by company cashier for an amount slightly in excess of this estimate. Check is cashed and given to an employee called the petty cashier. Petty cashier keeps this cash safe, makes payments from the fund, and keeps records of it in a secure petty cashbox.
