# petty cash book b by xQ826l5g

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```									As the cash book lists bank
payments & receipts, a petty cash
book is needed to record actual
cash transactions.
Voucher is a form which shows what
a payment is for .
Imprest systems is a
system by which a refund
is made of the total paid
out in a period.
A worked example of a petty cash book:

Step 1    Enter date and details of each payment .Put in the
total column.
Step 2 For step 1 also put the amount in the column for the
type of expense.
Step 3 At the end of each period,add up the totals column
Step 4 Now add up each of the expense columns. The total
of Step 3 should equal the total of all the expense
column
Step 5 Then balance off the petty cash book ,carrying down the petty
cash in hand balance to the next period
For example:
Write up a petty cash book,with analysis columns for office expenses,motor
expenses ,cleaning expenses and casual labour.The cash float brought down is \$600 a
the amount spent is reimbursed on 28 Feb.Show the balance carried down to 1 March
Year 8                                                      \$
2 F.Lee-casual labour                                  15
2 Unique Motors- motor repairs                         33
4 Petrol                                              27
5 Paper clips                                         10
8 Envelopes                                           12
9 Cleaning materials                                   15
11 C.Hop- casual labour                                 27
13 Mr.Ng-cleaner                                       21
16 Typewriter ribbons                                   24
18 Motor taxation                                       60
21 K.Kwan - casual labour                               20
Also show how the items for motor expenses and office expenses would appear in the
general ledger.
Petty Cash Book
Receipts Date            Details        Voucher   Total      Office   Motor   Cleaning Causel
No                 Exp      exp     Exp's   Labour
\$ Year 8                                         \$          \$         \$      \$         \$
600 Feb-01   Bank
2   F.Lee Causel Labour           2         15                                      15
2   Unipue Motors                 3         33               33
4   Petorl                        4         27               27
5   Paper clips                   5         10       10
8   Envelopes                     6         12       12
9   Cleaning materials            7         15                          15
11   C.Hop-Causel Labour           8         27                                      27
13   Mr.ng-cleaner                 9         21                          21
16   Typerwriter ribbons          10         24       24
18   Motor taxation               11         60               60
21   K.kwan-Causel Labour         12         20                                      20
296                  78     120         36          62
28 Bal c/d                      304
600                                      600
296 Mar-01 Bal b/d
304        Bank
General Ledger
Motor Expenses
Year 8                   \$
Feb 28     Petty cash   120

Office expenses
Year 8                 \$
Feb 28    Petty cash   78
Now you know how to
prepare a petty cash book ???
Exercise
Year 3
May 1    The cashier hands a cheque for\$100 to the petty
cashier to enable him to obtain cash for the
starting float of petty cash                       \$
3   Stationery                 Voucher No. 1         5.6
5   Postage                    Voucher No. 2          8.7
8   Cleaning expenses          Voucher No. 3         15.2
12   Payment of amount to K Sutton in the
purchases ledger           Voucher No. 4         27.4
17   Postage                    Voucher No. 5         6.3
20   S-Small- travel exp.       Voucher No. 6         4.5
23   Stationery                  Voucher No. 7        3.2
25   Cleaning expenses           Voucher No. 8        12.4
27   Telephone phone bill        Voucher No.9            1.2
29 Postage                    Voucher No. 10           6.3
31 The cashier reimburses the petty cashier the amount paid out to date
Petty Cash Book
Receipts Date         Details     Voucher Total Postage Stationery    Travel Cleaning Ledger Ledger
No                               Exp's            Folio Accounts
\$   Year 3                            \$        \$         \$         \$        \$              \$
100       May-01      Bank
3   Stationery     1       5.6               5.6
5    Postage       2       8.7    8.7
8    Cleaning      3      15.2                               15.2
12    K Sutton       4      27.4                                       PL1     27.4
17     Postage       5       6.3    6.3
20     S Small-      6
travel               4.5                        4.5
23    Stationery     7       3.2               3.2
25     Cleaning      8      12.4                               12.4
1.2           27    Telepone
29     Postage       10      6.3    6.6
89.6    21.3       8.8      4.5    27.6            27.4
31 Bal c/d                    11.6 GL 1    GL 2       GL 3    GL 4
101.2                                    101.2
11.6              Bal b/d
88.4              Bank
General Ledger
Postage
Year 3             \$
May 31 Petty cash 21.3

Stationery
Year 3             \$
May 31 petty cash 8.8

Travel Exp.
Year 3             \$
May 31 Petty Cash 4.5
Cleaning
Year 3             \$
May 31 Petty Cash 27.6
General Ledger
Bank
Year 3               \$
May 1 Petty Cash   100
Jun 1 Petty Cash   88.6

Purchases Ledger

K Sutton

Year 3             \$
May 31 Petty Cash 27.4
Revision Notes

• The petty cash book saves 1) the main cash book
2)the ledger accounts from containing a lot of
trivial details

• The use of the petty cash book enables the chief
cashier to delegate this type of work to a more
junior member of staff

• Under the imprest system,at the end of a
period ,the cashier reimburses the petty cashier the
amount spent in the that period ,so as to make up

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