It is frequently desirable that a superintendent or resident manager whose headquarters are distant from the head office, be furnished with funds to meet current expenses. If the amounts he expends are large, he should make his payments by means of checks on a special bank account. If they are small, he may make them in currency, as suggested in connection with the management of petty cash.
A superintendent's account should be kept, as far as circumstances permit, on precisely the same lines as the cashier's petty cash, and a similar record is therefore appropriate. Inasmuch as the superintendent must render to the chief office a report of his transactions, it is convenient to have his book printed with the alternate leaves perforated so that they may be detached; and by means of carbon paper, those sheets remaining in the book can be made to show a copy of each report sent to the head office. Experience has shown that unless some such method is followed,' the cash account of the superintendent may easily become confused and thereby entail the waste of much time.
Whatever system be followed for recording the disbursements of a superintendent or resident manager, it will be found wise to establish the rule that any collections he makes must invariably be remitted intact to the main office, and never allowed to become a part of, or to be included in, his petty cash; for if they are, the necessity for journal entries will arise, whereas all these cash transactions should be recorded on cash books.
REPORT OF CASH RECEIVED AND EXPENDED
BY THE SUPERINTENDENT AT...................................................
TOTAL RECEIPTS SUBMITTED HEREWITH
TOTAL EXPENDITURES PER VOUCHERS HEREWITH
TO BE CREDITED TO:
TO BE CHARGED AS FOLLOWS:
Form 6. Superintendent's Cash Book.
When a superintendent receives and disburses cash, as already suggested, a uniform style of report (Form 6) should be adopted. This, as stated, should be arranged so as to provide, by means of carbon copies, an original for transmission to the principal office and a duplicate to be retained by the superintendent.