14 



BULLETIN 811, U. S. DEPAETMEISTT OE AGRICULTURB. 



A. CURRENT ASSETS. 



Cash on Hand (Al). 



Debit: 



Credit: 



1. With the ixadeposited cash at the 



1. 



At the beginning of the month Avith 



time of opening the books a-s shown 





. an amount sufficient to close the 



by the Balance Sheet. 





account. The amount credited 



2. At the hegnnninp- of the fisrfll period 





will, of course, be identical with 



■with the undeposited receipts car- 





that debited at the close of the 



ried over from the previous fiscal 





previous month. 



period. 







3. At the end of the month with the 







undeposited receipts. 







Petty Cash (JJ). 



Debit: 



Credit: 



1. ¥7ith the 'amount of the fund origi- 



1. With the amounts transferred to the 



nally created. 



general fund when the petty cash 



2. With the amount of the increase in 



fund is decreased or discontinued. 



case the fund is increased. 





It will "he noted that all cash receipts are deposited in the bank, each bank de- 

 posit representing the exact amount of cash received since the previous deposit. 

 Practically all elevators need some cash for the payment of small expense items and 

 for making change. This Heed can be met most conveniently by the creation of a petty 

 cash fund, which operates as follows: A "check is drawn for the desired amount, say 

 $20. This check is charged to the Petty Cash account in the ledger. All small ex- 

 pense items paid from this fund are entered in a Petty Cash book, any small notebook 

 being used for this purpose. (See page 43.) When the fund needs replenishing, and 

 always at the end of the month, these petty cash disbursements are recapitulated and a 

 check is drawn for their total. An entry is then made in the Cash Journal, debiting 

 the proper expense accounts and crediting the bank for the total paid out. 



By following this system, the Petty Cash account always represents a resource of 

 the original amount, unless changed, and all current receipts of cash can be deposited. 



Cash in Bank {A3). 



Debit: 



1. With the available balance of the 



cash in the bank as shown by the 

 Balance Sheet at the time of open- 

 ing the books. 



2. With the total monthly deposits 



as shown by the Bank Deposits 

 column in the Cash Jom'nal. This 

 will include checks, currency, 

 drafts on consignees, as well as the 

 proceeds of notes discounted. 



Credit: 



1. With any overdraft as shown by the 



balance sheet at the time of open- 

 ing the books, 



2. With the monthly totals of checks 



drawn as shown by the Bank 

 Withdrawals column in the Cash 

 Journal and the Amount columns 

 in the Record of Grain Purchases. 



