14 
BULLETIN 811, U. S. DEPARTMENT OF AGRICULTURE. 
A. CURRENT ASSETS. 
Cash on Hand (Al). 
Debit: 
Credit: 
1. With the imdeposited cash at the 
1. 
At the beginning of the month "with 
time of opening the books as shown 
an amount sufficient to close the 
bv the Balance Sheet. 
account. The amount credited 
2. At the beginning of the fiscal period 
will, of course, be identical with 
■with the imdeposited 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 
imdeposited receipts. 
Petty Cash (A2). 
Debit: 
1. With the amount of the fund origi- 
nally created. 
2. With the amount of the increase in 
case the fund is increased. 
Credit: 
1. With the amounts transferred to the 
general fund when the petty cash 
fund is decreased or discontinued. 
It will be 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 need 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 accoimt always represents a resource of 
the original amount, unless changed, and all current receipts of cash can be deposited. 
Cash in Bank (A3). 
Debit: 
Credit: 
1. With the available balance of the 
1. 
With any overdraft as shown bv the 
cash in the bank as shown by the 
balance sheet at the time of open- 
Balance Sheet at the time of open- 
ing the books. 
# ing the books. 
2. 
With the monthly totals of checks 
2. With the total monthly deposits 
drawn as shown by the Bank 
as shown bv the Bank Deposits 
Withdrawals column in the Cash 
column in the Cash Journal. This 
Journal and the Amount columns 
will include checks, currency, 
in the Record of Grain Purchases. 
drafts on consignees, as well as the 
proceeds of notes discounted. 
