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Petty Cash

18 August, 2015 - 12:30
LO2 – Explain and journalize petty cash transactions.
 

The payment of small amounts by cheque may be inconvenient and costly. For example, using cash to pay for postage on an incoming package might be less than the total cost of processing a cheque. A small amount of cash kept on hand to pay for small, infrequent expenses is referred to as a petty cash fund.