Reconciling the Petty Cash Fund

Before you put more money in the fund, you first need to account properly for all the cash that has come out of the fund.

You start by totaling up and summarizing all the transactions on your petty cash control sheet. Your summary may look like this:

            Office supplies                        $63.12

            Postage                                    26.10

            Miscellaneous                             2.95

            GST                                           6.12

            Total                                      $98.29

 

It's easy to see that if you have $98.29 in expenses, there should be $1.71 left in cash in the box.

The reconciliation happens on the bottom of the petty cash control sheet. Start with the opening petty cash, subtract the expense receipts accounted for, and compare that number to what was actually counted in the box.

            Opening petty cash                        $100.00

            Less: receipted expenses                   98.29

            Equals: Ending petty cash                   1.71

            Cash counted in box                            1.71

            Difference                                           0.00

 

If you end up being out of balance by more than a few cents, you will need to retrace your procedures and re-add the receipts.