Accounting Procedures Manual, Financial Transactions
9/1/03 (Revised 9/03)
Apply Petty Cash Expenses
Apply Petty Cash Expenses provides a general overview to and procedures for applying petty cash expenditures
against the balance of a petty cash fund. This is done when a petty cash fund is being reduced or closed, and
petty cash expenditures also exist. In such cases, a journal entry is made to apply the existing expenditures
against the fund balance.
Petty cash fund expenditures are made in accordance with Alaska Administrative Manual (AAM) 50.210 – Petty
Cash. These expenditures are generally accounted for in a 310-10: Add Warrant transaction that both records
the expense and issues a warrant to the petty cash fund custodian to replenish the cash in the fund. However,
when a petty cash fund balance is being reduced or closed, a 430-54: Petty Cash Journal Entry is used instead to
simultaneously record existing petty cash expenditures and a reduction to the fund balance.
Agency journal entry transactions are balanced journal entry transactions with equal debit and credit financial
line amounts. In a 430-54: Petty Cash Journal Entry transaction, debit financial lines increase expenditures in
the appropriation/fund associated with the financial coding entered in the financial lines. The credit financial
lines decrease asset account 10080 (Imprest Cash) to reduce the amount recorded as cash held in a petty cash
430-54: Petty Cash Journal Entry
I. Compile source documentation.
Source documentation for a 430-54: Petty Cash Journal Entry includes:
• Petty Cash Envelope containing invoices, receipts, and other documentation for the expenses to be applied.
• Copy of email requesting that the petty cash fund be reduced or closed.
• Copy of 210-11: Agency Receipt Miscellaneous transaction if excess cash in the fund is also being
• Management Report of the petty cash fund ledger code by asset account 10080 balance.