Editing Party Expenses (section)

== Accounting ==

A Petty Cash advance is not treated as an expense. The Petty Cash is an asset of the Party until it is spent. Since it is not under the control of the Treasure it is considered as an Account Receivable. It is money owed to the Party by the Trustee.

When the Treasurer receives an expense statement from the Trustee, the expenses will be recorded as reductions in Accounts Receivable. If the Petty Cash is to be replenished, the new advance will increase the Accounts Receivable.

'''Sample Petty Cash for a Project&nbsp;'''

The following table shows the transactions for a hypothetical project with an approved budget of $1,000. Every positive transaction is balanced against a negative transaction. Funds added to Petty Cash (Accounts Receivable) reduces chequing. Expenses paid from Petty Cash are charged against the Expense Budget.

#On January 8 the Executive approved a budget of $1,000 for some project that will take several months. In effect, an amount of $1,000 has been set aside in the chequing account and in the Expense Budget. whoever volunteered to take on the project is designated as the "Trustee."
#On February 1 a cheque is issued to the designated Trustee for $300, transferring the funds from Chequing (reducing the balance) to Accounts Receivable (increasing the balance).
#On March 30 the Trustee submits an expense statement and supporting documentation for expenses of $200, which is charged to various expenses and reduces the amount outstanding in Accounts Receivable (A/R) and increases Expenses by the same amount
#The Treasurer issues a cheque to the Trustee in the amount of the expenses reported taking funds from Chequing and, charging it to A/R and replenishing the Trustee's Petty Cash Account.
#The process repeats for June and August.
#On September 30, the project is believed to be completed, so the Petty Cash is not replenished and a cheque for $25, the amount not covered by Petty Cash, is issued to the Trustee. The project appears to be completed for $950, $50 under budget. Note that if the final expenses at this point had been less than $300, the Trustee would be expected to return the balance in the Petty Cash account to the Party.
#A short time later, the Trustee discovers an additional expense is required and a cheque for the additional $75 is issued. Now the project total is $1,025, $25 over budget.

{| class="wikitable" style="text-align: right;"
|-
! Date
! style="text-align: center;" | Description
! colspan="2" style="text-align: center;" | '''Petty Cash - A/R'''
! colspan="2" style="text-align: center;" | '''Chequing'''
! colspan="2" style="text-align: center;" | Expenses
|-
| 
| 
| '''Transaction'''
| '''&nbsp;Balance&nbsp;'''
| '''Transaction'''
| '''&nbsp;Balance&nbsp;'''
| '''Transaction'''
| '''&nbsp; &nbsp;Total&nbsp; &nbsp;'''
|-
| 8-Jan
| '''Approved Budget'''
| 
| 
| 
| '''1,000'''
| 
| <br/>
|-
| 1-Feb
| Initial Advance
| 300
| 300
| <span style="color:#ff0000;">-300</span>
| 700
| &nbsp;
| &nbsp;
|-
| 30-Mar
| Expenses reported
| <span style="color:#ff0000;">-200</span>
| 100
| &nbsp;
| &nbsp;
| 200
| 200
|-
| 
| Reimburse Petty Cash
| 200
| 300
| <span style="color:#ff0000;">-200</span>
| 500
| &nbsp;
| &nbsp;
|-
| 30-Jun
| Expenses reported
| <span style="color:#ff0000;">-150</span>
| 150
| &nbsp;
| &nbsp;
| 150
| 350
|-
| <br/>
| Reimburse Petty Cash
| 150
| 300
| <span style="color:#ff0000;">-150</span>
| 350
| &nbsp;
| &nbsp;
|-
| 31-Aug
| Expenses reported
| <span style="color:#ff0000;">-275</span>
| 25
| &nbsp;
| &nbsp;
| 275
| 625
|-
| <br/>
| Reimburse Petty Cash
| 275
| 300
| <span style="color:#ff0000;">-275</span>
| 75
| &nbsp;
| &nbsp;
|-
| 30-Sep
| Expenses reported
| <span style="color:#ff0000;">-325</span>
| <span style="color:#ff0000;">-25</span>
| &nbsp;
| &nbsp;
| 325
| 950
|-
| <br/>
| Pay Balance of Expenses
| 25
| 0
| <span style="color:#ff0000;">-25</span>
| 50
| &nbsp;
| &nbsp;
|-
| 15-Dec
| Pay additional expenses
| &nbsp;
| &nbsp;
| <span style="color:#ff0000;">-75</span>
| <span style="color:#ff0000;">-25</span>
| 75
| 1,025
|}