Scribd
Upload
33 views22 pages

Petty Cash Book

Uploaded by

abuorf.b09
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
33 views22 pages

Petty Cash Book

Uploaded by

abuorf.b09
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 22

Chapter 5-

PETTY CASH BOOK


OBJECTIVES OF STUDY
• INTRODUCTION
• MEANING OF PETTY CASH BOOK
• ADVANTAGE OF MAINTAINING PETTY CASH
BOOK
• PETTY CASH BOOK USE IN ORGANISATION
• IMPREST SYSTEM
• LAYOUT OF PETTY CASH BOOK
INTRODUCTION

RECORD

BUSINESS ORGANISATION
FINANCIAL

TRANSACTIONS EVENTS SUCH AS


PURCHASES, SALES,
PAYMENTS OF BILLS,
RECEIPTS OF CASH
ETC
Book of account is the
place where all financial
information for a person or
business is collected.
FINANCIAL TRANSACTIONS ARE:

• PURCHASE OF GOODS WORTH $ 800

• SALE OF GOODS WORTH $ 1000

• ELECTRICITY BILL PAID $ 100

• PAYMENT TO SUPPLIERS $
5000
PETTY CASH
TRANSACTIONS RELATING TO SMALL VALUE:
• POSTAGE $12
• CLEANER’S WAGE $20
• BUS FARE $5
• STATIONARY $15

SUNDRY EXPENSES
A PETTY CASH BOOK IS USED TO RECORD LOW-
VALUE (PETTY) CASH PAYMENTS SUCH AS POSTAGE
AND STATIONERY, CLEANING, TRAVELLING EXPENSES
ETC.
PETTY CASH BOOK
BOOK WHICH MAINTAINS
PETTY MEANS TWO SEPARATE ACCOUNTS
A CASH ACCOUNT AS WELL
SMALL AS A BANK ACCOUNT
ADVANTAGE OF MAINTAINING PETTY
CASH BOOK
✔ It lists the transactions for transferring
To avoid recording small cash
to ledger accounts.
payments in the main cash
✔ It also acts as a ledger account for petty
book.
cash transactions.
✔ To avoid recording small cash payments
inTo
thereduce
main cashthebook.
number of
✔entries
To reduce the number of entries
in the main cash book in the
main cash book.
A PETTY CASHIER IS A JUNIOR
ACCOUNTANT WHO MAINTAINS PETTY
CASH BOOK
WORKING IN AN ORGANISATION

CHIEF ACCOUNTANT MONEY


PETTY CASHIER
A FUEL EXPENSE

SUBMITTE
D

PETTY CASH VOUCHER PETTY CASHIER


PURPOSE OF PETTY CASH
VOUCHER
IT SHOWS THE PETTY CASHIER THE
PURPOSE FOR WHICH THE MONEY IS
REQUIRED, THE DATE AND THE
SIGNATURE OF MR A RECEIVING CASH.

HELPS THE CASHIER TO CHECK AT


REGULAR INTERVALS THE VOUCHERS
AGAINST THE TOTAL CASH PAYMENTS
INCASE OF MISCALCULATIONS.
ADVANTAGES TO THE CHIEF
ACCOUNTANT

HE CAN CONCENTRATE ON MORE


IMPORTANT TASKS.

PROVIDES TRAINING TO THE PETTY


CASHIER

ACCOUNTANT MUST REGULARLY CHECK


THE WORK OF THE PETTY CASHIER
IMPREST AMOUNT OR FLOAT

• Most petty cash books are maintained


using the imprest system.
• Under this system the petty cashier starts
each period (week, fortnight, month etc.)
with a fixed amount of money. This is
known as the imprest amount or the
float.
IMPREST SYSTEM
PETTY CASHIER
GIVEN IMPREST
AMOUNT

ACCOUNTANT PETTY CASHIER


REIMBURSES THE PETTY
PROVIDES FUNDS TO
CASHIER ENOUGH CASH
TO RESTORE THE MEET PETTY
IMPREST AMOUNT EXPENSES

AT THE END OF THE PAYMENTS RECORDED


PERIOD, TOTAL IN THE PETTY CASH
PAYMENTS ARE BOOK USING THE PETTY
BALANCED CASH VOUCHERS
IMPREST AMOUNT $100

PETTY CASH PAYMENTS $80

BALANCE AT THE END $20

RESTORE IMPREST AMOUNT $80


ADVANTAGES OF IMPREST SYSTEM
• Control/limit/keep track of petty
cash expenditure.
• The cash remaining and the
vouchers received should equal the
imprest amount.
• Can help to reduce fraud
FORMAT OF PETTY CASH
The Layout of a Petty Cash Book
Total Date Details Total Paid Postage Stationery General Ledger
Received ($) ($) ($) Expenses accounts
($) ($) ($)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy