Petty cash is a current asset and should be listed as a debit on the company balance sheet. To initially fund a petty cash account, the accountant should write a check made out to Petty Cash for the desired amount of cash to keep on hand and then cash the check at the company's bank.
FDIC Insurance for Trust Bank Accounts The Federal Deposit Insurance Corporation (FDIC) insures bank accounts in the event of a bank failure. If you have more than the FDIC limit at a bank that fails, you could lose all or part of the amount that is not covered by the FDIC insurance. Coverage for living trust accounts. Living trust accounts for each trust owner are insured up to $250,000 (subject to some limitations) per beneficiary, regardless of whether the beneficiary is a close relative of the trustor.
For revocable trust accounts, the key to determining FDIC insurance coverage is the beneficiaries named, rather than the trustees or successor trustees. The account must also meet certain requirements. It must be identified as a trust account. The beneficiaries must be qualified beneficiaries, or the amount of FDIC insurance coverage will be impacted. Qualified beneficiaries are individuals, charities and non-profit organizations. And the beneficiaries must be named in the formal trust agreement. If all of these conditions are met, the FDIC insurance coverage is calculated by multiplying the $250,000 coverage times the number of beneficiaries. Separate calculations would be done for each trust account. If there are more than 5 qualified beneficiaries, the calculation can be more complex depending on the interest each beneficiary has in the trust. For details on this calculations and other details on the FDIC insurance coverage for a revocable trust, the FDIC Your Insured Deposits brochure is a very helpful tool. It can be found at this link. First published on BankersOnline.com 6/10/13