The definition of a datum is a fact used to make a conclusion or a point of reference in geography or geology. An example of a datum is a new scientific discovery used to reach a conclusion about the common cold.
How do you estimate minimum cash balance for the company? 2 ways I heard about are: 1) keep it equal to cash balance on B/S and 2) based on Net Working Capital. Is any of those methods preferred? Is there any other school of calculation that? And, if NWC method, then what exactly do you include in calculation (like include or excl.
If so, accounting must be done to keep all of your cash received accounted for. To establish a petty cash fund, you will first write a check payable to Petty Cash fund, cash it and then place it in your petty cash fund box. To record it in your general ledger, you will do as follows: Petty cash (debit). Cash (credit). The petty cashier makes payments out of the petty cash fund.