Cash

Cash consists of bank notes, coins, checks that have not been deposited, stored in the form of deposits or bilyet, travelers checks, cashier checks, bank drafts and money orders.

Cash is not included:

- Notes receivable, if any promissory notes submitted to bannk to be billed, then the note is still recorded as notes receivable.

- Stamps, stamps can sometimes be used for payment of the amount is small, but the stamps are not accepted as a deposit by a bank, therefore, stamps instead of cash.

- Check Back (Post Date Checks)

- Securities such as stocks, bonds

- Deposits at banks or savings abroad in foreign currency.

- Money restricted cash, usually in the form of funds, not included in cash but are reported separately as a fund. Example: funds, micro-enterprise loans. If its use is still within one year of the current assets included in the group, but if it can not be used for expenditures in one year it was reported in a group of non-current assets.

In practice, sometimes cash grouped into two: Petty Cash and Cash Big. Petty Cash is used for daily operational and there are not too large. Usually used for operational costs such as administrative fees, telephone charges, electricity, etc.. Cash is usually used to accommodate large Receivables receipts, bank loans, the expenditure to pay debts, expenses for buying assets.

Petty Cash is cash available to pay for expenses which are relatively small and uneconomical if paid by check.

One of the key principles in the supervision of cash disbursements is that all cash disbursements should be made by check, except for cash disbursements made through petty cash. For small amounts of cash expenditures and routine checks if using it will spend a lot of checks, it is becoming uneconomical.

Then set up a petty cash to pay for expenses such as relatively small nominal expenditures for postage, postage, fax, purchase of stationery, photocopiers, etc.. To establish a petty cash, the company must assess the amount of cash required for a certain period, eg one week or one month.

There are two methods used to record petty cash are:

1. Imprest System

In this system the amount of petty cash account always remains in the amount of checks presented to the cashier as petty cash to establish a petty cash fund. Every time you make payments, petty cash cashier must make proof of expenditure, if the amount of petty cash is low and also at the end of the period of petty cash cashier will ask for cash back filling the small amount that was spent. On the imprest system of petty cash expenditures are recorded when a new replenishment.

2. Fluctuation Systems

In the method of small fluctuations in the cash balance is not fixed but fluctuate according to the amount of petty cash expenditures. Fluctuations occur in the method of any petty cash expenditures directly recorded, so the book has a small cash disbursements journal and function as the basis for the books to the ledger accounts