Question

PLEASE ANSWER WHOLE THING

Petty Cash Funds and Bookkeeping Systems

1. Discuss what a petty cash fund is and why this is needed within a medical practice.
2. Describe the seven main steps for maintaining a petty cash fund.
3. Discuss the two main ways bookkeeping can be completed. Which method do you feel is easier to work with and why?

Provide your responses, with supported information from your textbook and any other research material of your choice. Your responses should be in short essay form and adhere to APA format including references.

Preparing a Bank Deposit

List the steps to preparing a bank deposit slip. Highlight any and all crucial steps in the process.

Answer 1

1)Petty cash refers to a small amount of cash kept in an organization for any urgent or emergency purchase of medical requirements in an healthcare set up.It is needed in an medical practice for example. A healthcare worker when goes for a home visit from hospital the travelling expenditure Can be get from a petty cash if available.

2)The steps in maintaining a petty cash fund are

• A safety locker or a lock box is necessary to keep the cash
• The task has to be assigned to a responsible person like an admin
• Determine the withdrawal limit and its mode of repayment by th staff has to be enforced
• Deposit cash in the petty cash received from the management
• Maintain a log book to keep a track of expenses and repayments .This has to be tied up with the account of the organization
• Review and approval if the claim
• Periodic counting of the cash

3)Book keeping is one of the most important thing while maintaining petty cash in any organization.

The two common method used here are

• Single entry book keeping method : It is mostly used in smaller organization transactions related to cash receipts, purchase, sales, disbursements .A daily summary is maintained here.
• Double entry book keeping method : This is maintained by accountant to complete accounting details. The concept if debit and credit are involved here.

A bank deposit Can be prepared in the following way

• Personal information to be entered
• Enter transit number
• Enter bank name date,signature, cash
• Check entry area
• Complete the additional Check entry and additional check entry total
• Sub total
• Net cash deposits