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Financial accounting notes

THE PETTY CASH FUND:-


Petty means “small or little”. In large business concerns all the money received
is deposited into bank and all the payments are made through check. But difficulty
arises when small payments are to be made for which checks could not be issued.
Therefore, in order to eliminate such problems “Petty Cash Fund” is raised which is
established for paying small items. Such a fund eliminates the necessity of writing
checks for small amounts.

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