Chapter 6, Problem 8DQ

Summary Introduction

Introduction: Petty cash fund refers to the small portion of the cash fund used or to manage small expenses where payment cannot be made by cheques all the time. The petty cash transaction need to be verified to clarifies the accounts at the month end. This helps company to rectify the errors in accounts which leads to increase in the net income of the company. Company need to maintain petty cash expenses in order to give regular check on the company accounts.

To determine: The meaning of petty cash receipts and the one who signs it.