Jocelyn is the owner of Jocelyn's Thai Food. She has a policy that all payments must be made by cheque, and she is the only person authorized to sign the cheques. Jocelyn is planning a two-week holiday and is very concerned about a few small deliveries that are expected during her vacation. A friend suggested Jocelyn use a petty cash system to pay for these small deliveries. Jocelyn has come to you for advice about a petty cash system. Specifically she would like answers to the following concerns:
1. If she records the petty cash payments each time the fund is replenished, she will end up with a very large balance in petty cash at the end of the year.
2. What is the best way to control the payments from the fund? Should all employees have access to the petty cash fund? What types of payments should be made out of petty cash?
3. How often should the fund be replenished? Instructions Advise Jocelyn on each of her concerns over the petty cash fund.