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                                                      $
Feb 1 Letterheadings                                        32
     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
            1   Letterheading                 1         32       32
            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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