What is Petty Cash? Definition, Usage, and Accounting for Petty Cash Accounts
If new funds are needed, the cashier writes a new check to fund the petty cash drawer and takes, in exchange, the receipts from the purchases that depleted the cash. Ananya heads to her desk and opens the petty cash box—allocated specifically for urgent, small-scale needs like this. She quickly withdraws the required amount, issues a petty cash voucher to document the transaction, and informs the IT technician to buy the monitor immediately. Within an hour, the replacement monitor is installed, and the IT team resumes their work, ensuring the…
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