10513 ENTRY NO. 13 [CASH IS RECEIVED THAT IS NOT EXPECTED TO BE DEPOSITED]
(Revised 5/87)
Nature of Transaction:
Cash is received that is not expected to be deposited.
Journal Entry for General Ledger Accounts:
Debit:
1190 Cash on Hand
Credit:
3730 Uncleared Collections
Source:
Document:
Cash Receipt
Register:
Cash on Hand Register
Explanation:
When cash or checks are received that (1) normally will be returned to payers without being deposited, such as bid deposits, or (2) are payments of smaller amounts than are due the State which if deposited would prejudice the State's right to make further collections, they are retained in agency custody as cash on hand until their final disposition is determined. These items subsequently will be either (1) returned to the payers or (2) applied and deposited in the General Cash account.
Agencies will maintain a register of such items received, on which subsequently will be noted the date on which each item is returned or deposited. The open items in this register will be proved or reconciled monthly to the amount of such cash on hand and to the balance of Account No. 1190.
When these items are returned to the payers or deposited the above entry is reversed. When these items are deposited in the General Cash account, the amount is recorded in the General Cash Receipts Register and included in Entry No. 7.
