Intermediate Accounting 6 Cash and Receivables Petty Cash a petty cash system is a cash fund created to allow a company to pay for small amounts that might be impractical or impossible to pay by check The entry to record the establishment of the fund is Petty Cash 500 ash 500 The petty cash account is neither debited nor credited again unless the fund size is to be increased or decreasedPetty Cash A petty cash system is a cash fund created to allow a company to pay for small amounts that might be impractical or impossible to pay by check. ➢ The entry to record the establishment of the fund is: Petty Cash 500 Cash 500 ➢ The petty cash account is neither debited nor credited again unless the fund size is to be increased or decreased. Intermediate Accounting 6 Cash and Receivables