what is petty cash what is petty cash the petty cashier recording the opening balance – float ...
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Petty Cash
What is Petty Cash The Petty Cashier Recording the Opening Balance – float Recording the expenses Balancing the account Restoring the Imprest
This lesson will cover
Petty Cash is a small amount (Petite) of money available for small purchases.
For example; stamps, a taxi fare, tea/coffee etc.
It would not be used to buy larger items such as IT equipment, vehicles or furniture for example.
What is Petty Cash
Which of the following items would be purchased through Petty Cash?
Item Petty Cash?
Coffee
Printer
Birthday card
Paper
Photocopier
Lawnmower
Staples
Taxi fare
Computer Desk
Stamps
The Petty Cashier is the person responsible for the Petty Cash.
The Petty Cashier
Petty Cashie
r
1. Receives Opening PC•Debit PC book
2. Receives request for
funds
3. Completes PC voucher
4. Receives authorisatio
n for payment
5. Pays expense
6. Records payment •Credit PC book
7. Balances PC book
8. Requests Imprest to
restore balance
Petty Cash – small expenses Petty Cashier Analysis Imprest
Key Terms
Petty Cash Wordle
Enables the business control small expenses
Vouchers can be checked against money paid
Enables small cash payments that would be awkward or expensive to pay by cheque (37c per cheque)
Benefits of Petty Cash
The Petty Cashier Receives an Opening Petty Cash Balance (float). This is recorded in the Debit of the Petty Cash book. For example, the Petty Cashier receives €200 at the beginning of January for the Petty Cash float.
1. Receives an Opening Balance
Date Details Total Date Details V. No. Total Post Travel Clean
1/1/2012 Opening Bal. 200.00
Petty Cash
Petty Cash
During the month, the Petty Cashier is asked to pay small expenses.For example, Jan. 3rd Postage €2.50Usually a receipt is attached
2. Receives a request for funds.
Petty CashPetty Cash
The request for funds is accompanied by a completed petty cash voucher.
3. Completes the Petty Cash voucher.
Petty CashPetty Cash
PETTY CASH VOUCHER
Date: 3/1/2012 Voucher No.: 1
Details: Postage
Amount: €2.50
Signed: M. Wright Authorised by: A. Lee
The voucher needs to be signed by the person seeking the money and by the person authorising payment.
4. Receives authorisation for payment.
Petty CashPetty Cash
The Petty Cashier pays the cash and files the voucher.
5. Pays the expense
Petty Cash
The payment is recorded in the Credit of the Petty Cash book
6. Records the payment
Petty Cash
Date Details
Total Date Details
V. no. Total Post Travel Clean
1/1/2012 Opening Balance
200.00 3/1/2012 Postage 1 2.50 2.50
Petty Cash
Petty Cash
At the end of the month, the Petty Cashier balances the petty cash book.
7. Balances the Petty Cash book
Petty Cash
Date Details Total Date Details V. No. Total Post Travel Clean
1/1/2012 Opening Balance
200.00 3/1/2012 Postage 1 2.50 2.50
5/1/2012 Taxi 2 7.50 7.50
18/1/2012 Cleaning 3 12.00 12.00
25/1/2012 Postage 4 5.50 5.50
31/1/2012 Balance c/d 172.50
200.00
200.00 8.00 7.50 12.00
1/2/2012 Balance b/d 172.50
Petty Cash
The Petty Cashier identifies the imprest and request payment from Finance to restore the balance to its original sum to begin the next month.
8. Requests Imprest to restore balance
Petty Cash
Date Details Total Date Details V. No. Total Post Travel Clean
1/1/2012 Opening Balance
200.00 3/1/2012 Postage 1 2.50 2.50
5/1/2012 Taxi 2 7.50 7.50
18/1/2012 Cleaning 3 12.00 12.00
25/1/2012 Postage 4 5.50 5.50
31/1/2012 Balance c/d 172.50
200.00
200.00 8.00 7.50 12.00
1/2/2012 Balance b/d 172.50
1/2/2012 Imprest 27.50
Petty Cash