Presentation is loading. Please wait.

Presentation is loading. Please wait.

Petty Cash Book.

Similar presentations

Presentation on theme: "Petty Cash Book."— Presentation transcript:

1 Petty Cash Book

2 What is petty cash book ? As the cash book lists bank payments & receipts, a petty cash book is needed to record actual cash transactions.

3 Voucher is a form which shows what a payment is for .

4 Imprest system Imprest systems is a system by which a refund is made of the total paid out in a period.

5 A worked example of a petty cash book:
Step Enter date and details of each payment .Put in the total column. Step For step 1 also put the amount in the column for the type of expense. Step At the end of each period,add up the totals column Step Now add up each of the expense columns. The total of Step 3 should equal the total of all the expense column Step Then balance off the petty cash book ,carrying down the petty cash in hand balance to the next period

6 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 and the amount spent is reimbursed on 28 Feb.Show the balance carried down to 1 March . Year $ Feb 1 Letterheadings 2 F.Lee-casual labour 2 Unique Motors- motor repairs 4 Petrol 5 Paper clips 8 Envelopes 9 Cleaning materials 11 C.Hop- casual labour 13 Mr.Ng-cleaner 16 Typewriter ribbons 18 Motor taxation 21 K.Kwan - casual labour Also show how the items for motor expenses and office expenses would appear in the general ledger.

7 Petty Cash Book

8 General Ledger Motor Expenses Year 8 $ Year 8 $ Feb 28 Petty cash 120
Office expenses Year $ Feb Petty cash

9 Now you know how to prepare a petty cash book ???
Let's try try !!!!

10 Exercise 29 Postage Voucher No. 10 6.3
Year 3 May 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 5 Postage Voucher No 8 Cleaning expenses Voucher No 12 Payment of amount to K Sutton in the purchases ledger Voucher No 17 Postage Voucher No 20 S-Small- travel exp Voucher No 23 Stationery Voucher No 25 Cleaning expenses Voucher No 27 Telephone phone bill Voucher No 29 Postage Voucher No 31 The cashier reimburses the petty cashier the amount paid out to date

11 Answer

12 General Ledger Postage Year 3 $ May 31 Petty cash 21.3 Stationery
Travel Exp. Year $ May 31 Petty Cash 4.5 Cleaning May 31 Petty Cash

13 General Ledger Purchases Ledger Bank Year 3 $ May 1 Petty Cash 100
Jun Petty Cash K Sutton Year $ May 31 Petty Cash Purchases Ledger

14 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 the cash float.

15 The End

Download ppt "Petty Cash Book."

Similar presentations

Ads by Google