In establishing a petty cash fund, a check is written for the amount of the fund and is recorded as a debit to Accounts Payable and a credit to Petty Cash.

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In establishing a petty cash fund, a check is written for the amount of the fund and is recorded as a debit to Petty Cash and a credit to Cash or Checking Account. There is no involvement of Accounts Payable in this transaction.

In Establishing a Petty Cash Fund, a Check Is Written