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I. OBJECTIVE
1. To provide guidelines on the accounting policy for cash
II. DEFINITION OF TERMS
1. Cash On Hand – includes not deposited collection
2. Payroll Fund – includes cash to be use for payroll purposes
3. Petty Cash Fund – includes cash to be use for petty/small amounts of expenses
III. GENERAL POLICIES
Cash must be readily available in payment of current obligations and not subject to any restrictions. Cash is measured at face value.
• Cash Shortage – Cash Count < Cash per Book
• Cash Overage – Cash Count > Cash per Book
The cash shall be recognized if and only if:
• It is probable that future economic benefit will flow to the entity
• It can be measured reliably
Cash is presented as single line item and part of current assets.
• Cash On Hand
• Cash In Bank – BDO Savings Account # 2258000682
* It includes all the receipts deposited in the bank.
• Cash In Bank – BDO Savings Account # 4708006048
* It includes all the disbursements made in the bank.
• Cash In Bank – BDO Current Account
• Petty Cash Fund
• Payroll Fund
IMPREST FUND SYSTEM shall be used in controlling cash.
This means that all receipts must be deposited daily and all disbursements
must be made through checks, except for petty expenses.
IV. PROCEDURE FLOWCHART
Flowchart Title
(Not Applicable)
V. REFERENCE/INTERFACE PROCESS
Document Title
1. Summary of Accounting Policies
VI. FORMS AND RECORDS
Form Title
(Not Applicable)
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