Future Profit - WHS Accounting

The Westwood Schools Introduction to Accounting Course taught by Mrs. Davis.

This is where we will post our daily topics of discussion and invite business leaders to contribute and share with the class as we learn about accounting.

Wednesday, October 11, 2006

PETTY CASH

An amount of cash kept on hand and used for making small payments is called petty cash.
buisnesses usually have some small payments that are not check worthy or cost efficient so they use petty cash. They usually have a different cash fund for it.

Chapter 6 vocab

checking account
endorsement
blank endorsement
special endorsement
restrictive
bank statement
dishonored check
eft
debitcard
petty cash
petty cash slip

Scribe Post on 5-3

Accounting 5-3

Vocabulary words you will need to know:

Proving Cash: determining that the amount of cash agrees with the balance of the cash account in the accounting records.

Correcting Entry: a journal entry made to correct an error in the ledger.

*when an error in a journal entry has been posted, the incorrect journal entry should be corrected with an additional journal entry.