OFFICE CASH DISBURSEMENTS
26. As there are a number of disbursements for office help, advertising, telegraph, etc., that should be kept separate from the general cash, it is very desirable to establish an office cash fund. This fund is started by charging to office cash in the general ledger a definite amount, say $500.00, which amount is drawn from the bank or set aside for special checking for the payment of all miscellaneous bills or drawings of principals on account of salary, also the drawings of salaried employes. This account may be as large as is required for the purpose, and when the office cash becomes depleted, more is drawn which can be added to the account. At the end of the month, a statement is made of the totals of the different columns which should be a duplicate of the office disbursement sheet. These totals are entered in the general cash posted therefrom, a check given for office cash disbursements for the amount of the interest, say $500.00, and credit given the account for the difference in the amount spent as shown by the statement.
Fig. 10. Detailed Record of Office Cash Disbursements
The office cash disbursement sheet, shown in Fig. 10, should be 14 by 16 inches in size, with sheet number and month of, in the heading. The box headings are as follows: Day, item, posting, general ledger, salaries, office help, advertising, private wire, tickers, telephone and telegraph, special commissions, rent, and sundries. The office cash balance should be kept independent of the general cash balance and, preferably, by another clerk.
Entries should be made as money is disbursed, with the proper vouchers for the same, to be turned in with the report.
Fig. 11. Record of Margin Balances to Protect the Customer's Account
The totals of the different accounts, having been entered in the general cash, are posted to the debit of their respective accounts in the general ledger.
In localities where cotton is largely dealt in, or where tobacco is largely dealt in, it may be necessary to add columns for the tobacco ledger or the cotton ledger in the general cash, but in localities where the transactions are not frequent, the accounts for such transactions and also the deals in provisions are carried in the grain ledger.
Any cash book sheet which should happen to be spoiled should be marked void in red ink, and filed in its regular order with the other cash sheets, but in no case should it be destroyed.