THE PETTY CASH FUND
THS ROOM 8 UNIT LESSON PLAN
Mr. Hartung, Teacher
Course Name: Accounting I
Content Area: Petty Cash, Glencoe Accounting, Chapter 22
Acquisition Level: ESL to Early Advanced
Estimated Sessions: 5 @ 45 minutes/session
This lesson introduces accounting students to the management of cash funds generally used on a daily basis in a
typical small business environment. Some businesses keep cash on hand for small incidental purchases.
Businesses use petty cash funds because writing checks for small amounts is impractical, costly, and time
consuming. The accounts used for this cash include Petty Cash Fund, Cash in Bank, Cash Short & Over.
Students will learn to create and use a petty cash register, requisition, and voucher.
CONTENT OBJECTIVES—WHAT YOU WILL LEARN:
Open and replenish a petty cash fund
Journalize opening a petty cash fund
Prepare a petty cash requisition to replenish the petty cash fund
Use a petty cash register to record petty cash disbursements
Journalize replenishing a petty cash fund
Use Excel to create/copy/paste special a Journal Template for this and future applications
Use Excel to create a Petty Cash Voucher for verifying the disbursement of petty cash
Use Excel to create a Petty Cash Requisition for replenishing the petty cash fund
Learn to create and apply Excel formulas and operators and various Excel formatting skills including
creating a workbook with multiple worksheets
Learn to set Excel row height to specific values
THE PETTY CASH FUND
Students will build upon previous content vocabulary and apply accounting knowledge/rules to the content
objectives using Excel. Students should prepare to learn and spell the following:
Petty Change Fund
Petty Cash Disbursement
Cash Short & Over Account
Petty Cash Voucher
Petty Cash Requisition
Petty Cash Register
Cash box with a fixed petty cash amount. Build Excel workbook that includes a petty cash register, general
journal, petty cash reconciliation form, and multiple petty cash vouchers. Vocabulary listing with definitions and
Some businesses keep cash on hand for small incidental purchases. A petty cash fund is another record of cash
similar to the Cash in Bank we have used throughout the year. Businesses use petty cash funds because writing
checks for small amounts is impractical, costly, and time consuming. The accounting rules are the same with
respect to debits and credits. A petty cash fund has a normal debit balance just as Cash in the Bank.
A petty fund is an amount of money available for incidental purchases without going through the formal
procedures of requesting a purchase. When the fund is first established, the petty cash fund amount is
estimated and may later be adjusted. An employee is assigned to be the petty fund cashier. A check is written
to the petty cashier to obtain the required cash. A business will determine the maximum purchase amount that
may use petty cash funds.
The petty cash fund is established by writing a check for the amount of the fund. The check is made payable to
the person in charge of the petty cash fund. Record this transaction in the asset account Petty Cash Fund.
Practice these transactions with blank checks and journal entries. See Business Transaction on page 647.
Establish someone the class as the Petty Cashier to whom the check is written.
THE PETTY CASH FUND
The petty cash fund is replenished by restoring the fund to its original amount. The petty cash balance is
reconciled with the petty cash vouchers and then a petty cash requisition form is prepared to replenish it.
Create Excel workbook consisting of a petty cash register, general journal, petty cash reconciliation, and multiple
petty cash vouchers—15 total vouchers. Students will complete this through guided practice and independent
work. A teacher-provided template is provided and demonstrated. Save the workbook as Petty Cash Fund
Guided Practice: Complete Business Transaction, Page 647, for establishing a Petty Cash Fund using the Excel
workbook. Students will rename the Excel template Petty Cash Practice Transactions. Evaluation through
teacher review of on-screen documents.
Whenever a petty cash payment is made, a petty cash voucher is completed and serves as proof of payment.
Guided Practice: Class assigns Petty Cashier, check is written, amount placed in Petty Cash Box. Each student
completes a voucher for any amount not to exceed $5.00. Assign each student a voucher number. Choose any
product related to supplies, deliver, misc, or general. Vouchers submitted to Cashier. Cashier gives money to
the students. Have student volunteers come forward to complete the PC Register on class computer while
students complete register at their computer. Verify totals and equality at bottom of register. All students
compare totals and show to teacher. Reconcile the cash fund using the Excel template. Refer to page 649 and
to the Excel template for guidance. Complete the Excel Petty Cash Requisition using the information from the
register. Make journal entries using the requisition as source document. Refer to Reconciliation for any Cash
Short & Over. Write a check to replenish the Petty Cash Fund.
Guided Practice: Practice using the vouchers and reconciliation as shown on page 649. Make adjustments as
required. Evaluation through teacher review of on-screen documents.
Guided Practice: Refer to the petty cash requisition on page 650. Enter these amounts in the Excel worksheet
Petty Cash Practice Transactions.
A petty cash register is a supplemental record that summarizes the types of petty cash disbursements. It is not
an accounting journal.
Guided Practice: Refer to the petty cash register on page 651. Enter these amounts into the Excel worksheet
Petty Cash Practice Transactions. Verify that column totals add properly.
Independent Practice: Problem 22-5, page 660; Establishing and Replenishing a Petty Cash Fund. Save
Workbook as Problem 22-5. Show completed documents to teacher.
THE PETTY CASH FUND
Independent Practice: Problem 22-6, page 661; Establishing and Replenishing a Petty Cash Fund. Save
workbook as Problem 22-6. At step 3, use the Excel Petty Cash Register. Add Step 4.5 to complete a Petty Cash
Reconciliation using Excel doc. Show completed documents to teacher.
Independent Practice: Problem 22-7, page 662; Using a Petty Cash Register.
Complete Check Your Understanding, page 658; 3, 4, 5, 6 & 7.
Practice defining and spelling content vocabulary. Refer to handout and notes from Day 3.
Quiz, Using a Change Fund and Excel applications.
Critical Thinking, page 666; 1, 3, & 4.
Writing Support & Matter of Ethics, page 666; Borrowing from the Petty Cash Fund.
C22 Petty Cash Exam.