Which one of the following procedures is incorrect for setting up and maintaining a petty cash fund?
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Question:
a. A check is prepared for a fixed amount; when the check is cashed, the money is entrusted to a petty cash custodian.
b. An entry is recorded to establish the fund and obtain the cash.
c. When appropriate documentation is presented, cash payments are made from the fund; the petty cash custodian retains the documentation.
d. When the petty cash fund is replenished, an entry is recorded to recognize an increase in the petty cash account.
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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