This summary is a record of cash sales for the day. It accounts for cash at the end of the day over the amount in the Change and Petty Cash Fund at the beginning of the day.
Henry takes the cash sales entry from his cash register tape. If he had no cash register, he would simply total his cash sale slips and any other cash received that day.
He carries the total receipts shown in this summary for January 3 ($267.80), including cash sales ($263.60) and sales tax ($4.20), to the Monthly Summary of Cash Receipts.
Petty cash fund
Henry uses a petty cash fund to make small payments without having to write checks for small
amounts. Each time he makes a payment from this fund, he makes out a petty cash slip and
attaches it to his receipt as proof of payment. He sets up a fixed amount ($50) in his
petty cash fund. The total of the unspent petty cash and the amounts on the petty cash slips
should equal the fixed amount of the fund. When the totals on the petty cash slips
approach the fixed amount, he brings the cash in the fund back to the fixed amount by
writing a check to "Petty Cash" for the total of the outstanding slips.
(See the Check Disbursements Journal entry for check number 92.)
This restores the fund to its fixed amount of $50. He then summarizes the slips and enters
them in the proper columns in the monthly check disbursements journal.
Information courtesy of the Internal Revenue Service.
Sample Record System:
Daily Summary of Cash Receipts
Monthly Summary of Cash Receipts
Check Disbursements Journal
Employee Compensation Record
Annual Summary
Depreciation Worksheet
Bank Reconciliation
