201 - Cash on Hand

Current Assets

Cash & Contracts

Synopsis

Account 201

Remarks:

Cash on hand is a clearing account for all cash received in the normal course of daily business and not yet deposited in the bank.  All cash received should be deposited the next banking day.

All cash received, regardless of the source, should pass through the hands of the cashier, or other authorized person, for proper recording.  If using a manual system, it is important that individual, pre-numbered cash receipts be used.

Receipts that are voided should carry an explanation thereon and all copies intact.  Voided receipts should be co-signed by the General Manager be recorded in the cash receipts journal in numerical sequence with other receipts to provide an audit trail.

All checks should be endorsed with the retailer's bank deposit stamp immediately upon receipt, which will safeguard both the retailer and the customer in the event a check is lost or stolen.

Cash overages and shortages should be recorded daily.  Overages should be recorded in the cash receipt book and included in the bank deposit.  Shortages should be reimbursed from the petty cash fund, with an explanation on the corresponding petty cash voucher.

Note: