These are expenses which are incurred day after day. Whsmith petty cash voucher book whsmith petty cash. This template was designed to be used not only as a petty cash book, but to give a daily and monthly overview of your real cash reserve. How process transactions in the petty cash bookfor more go to to donate. The cheques are drawn periodically for petty expenses and debited to petty cash account from the cash book. Particulars of cash receipts and expenses are written together in a single column known as particulars column and another column is. Oct 29, 2017 this petty cash record log book cum voucher book has two sections to record 300 petty cash transactions. The amount of reimbursement is equal to the expenses paid through petty cash since the time of last reimbursement. In order to gain deep understand, please refer to the petty cash book example below. This 2part carbonless book can be used to document the receipt of petty cash. Petty cash book management professional excel template.
Spirax 565 cash book with red ruling 167x114mm 70 page. Petty cash book template excel software accountant. The cash book containing two money columns cash column and bank column on both sides for recording cash and bank transactions is called a double column cash book. There might be a petty cash drawer or box in each department for. Credit decrease cash in bank current asset account on the balance sheet if you are replenishing exchanging receipts for cash. The cash is given to the petty cashier either on ordinary system or imprest system which are briefly explained below.
Then, record the replenishment by debiting the petty cash account and crediting the bank account you used to refill the fund. The second person should have responsibility for recording the petty cash transactions into your bookkeeping system. These balances include savings and checking accounts. Guildhall essential a4 double entry cash book guildhall essential a4. In almost all businesses, it is found necessary to keep small sums of. As the petty cashier cannot draw as and when he likes, it prevents unnecessary accumulation of cash in his hand thus the chances of defalcation of cash are minimised. Every office has petty cash to spend on items that are required immediately. Petty cash book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc these are expenses which are incurred day after day. Petty cash book cash book part 4 class 11dont forget to subscribe our second channel too s.
Nov 27, 2019 the petty cash fund, which originally contained the imprest fund of 100 in cash, now contains two petty cash vouchers for a total of 65, and the remaining cash held of 35. Petty cash float is the initial amount of petty cash you have in your petty cash fund. Petty cash any organization will have small or petty expenditures, such as buying office supplies or buying lunch for the office. Petty cash book by speedy publishing llc, paperback. Therefore, the petty cash book is a cash book for small payments. The cash is given to the petty cashier either on ordinary system or imprest system which are briefly. When creating a petty cash account, be sure to document the origin of the cash you use to start with, and also keep a petty cash book to track your every petty cash purchases. Controllimitkeep track of petty cash expenditure the cash remaining and the vouchers received should equal the imprest can help to reduce fraud or other suitable advantage. Petty cash book meaning preparation of petty cash book imprest system. The tops money and rent receipt book is the perfect solution for any small business or service provider. Cash includes currency and coins, although most businesses do not keep much of this type of cash around.
Petty cash book definition, types, format, examples. A petty cash book is quite necessary to create and facilitate small payments in a business or in organizations. Nov 08, 2019 petty cash replenishment refers to the process of restoring the cash balance in the petty cash fund back to its original imprest amount. A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure. The petty cashier gets cash against the cheque from the bank and records the cheque in the receipts column of the petty cash book. Then, create another journal entry debiting the petty cash account and crediting the cash account.
There are two primary types of entries in the petty cash book, which are a debit to. The journal entry to replenish the account would include a. However, just as easy as cash is to spend, it can also cause a lot of problems. Petty cash book meaning, types, examples, and faqs. Petty cash book helps to keep the main cash book in a compact form because numerous entries for small and petty items are recorded in the petty cash book itself. Journal entry for removing money from the petty cash fund. The petty cash book is meant to meet the daytoday expenses and thus is entrusted in the hands of a petty cashier. The cashier creates a journal entry to record the petty cash receipts. Meaning of petty cash book and advantages of keeping petty. With option 2 and 3 care needs to be taken to at least put a receipt of some sort into the box if you dont have the patience to fill in a voucher or log. Petty expenses are recorded in petty cash book in chronological order of dates instead of the cash book. Challenge 280 x 141 mm duplicate petty cash book, carbonless, 200 pages, set of 1. The receipt column is used to record the opening balance.
Petty cash imprest funds and reimbursements petty cash. At every point in time, the total amount of all receipts plus the cash on hand shall be equal to the total approved petty cash float of n250,000. This book contains several petty cash vouchers to make tracking a breeze. Oct 09, 2020 set a dollar limit on purchases that can be made from petty cash. This type of cash book usually uses the imprest system. The amount paid by the petty cashier indicates the summary of expenses which are debited and petty cash account is credited. Debit increase petty cash current asset account on the balance sheet credit decrease cash in bank current asset account on the balance sheet.
Petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel, newspapers, cleaning, pins, and causal labor etc. Petty cash accounting procedures reconciliation uses. It has two sides the debit side and the credit side. A petty cash book is a ledger kept with the petty cash fund to record amounts that are added to or subtracted from its balance. The petty cashier will record this amount on the debit side of the petty cash book while the chief cashier will record the same amount on the credit side of the main cash book. Prepare a blank petty cash log utilizing a small book or you can use this free pdf template.
Petty cash or the petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check. Accounting for petty cash explanation, related controls and. Nba implements petty cash disbursement and retirement. Download petty cash book excel template exceldatapro. Petty cash financial accounting simple book production. The credit side consists of several analysis columns. It is very easy to spend the petty cash but since justification and appropriate documentation is needed for reimbursements, you need to keep track of where the money went. This voucher must be authorized by a responsible officer before the petty cashier makes the payment. Columnar petty cash book contains many money columns to record day to day expenditures. The receipt column is used to record the opening balance and the amount received from the head cashier. Petty cash is a system that funds and tracks small purchases such as parking meter fees that arent suitable for check or credit card payments. It places and recognizes the expenditure for items such as postage and stamps, bus fare, and stationery expenses as well.
All the details about your petty cash fund should be stated in a written petty cash policy. The heads of expenditure are not required to be separately posted in the ledger. Jul 24, 2018 main cash book does not become over bulky. At the end of each month or when the petty cash balance available reaches a reorder level of n60,000, the petty cashier shall complete the petty cash replenishment form. In petty cash book, payments for petty items are recorded. Firms usually employ a junior staff proved to be faithful and of high integrity to do this work. A petty cashier receives a fixed amount of money from the head cashier with which he meets petty expenses of a certain period and records in chronological order of dates. Petty cash reconciliation form fill out and sign printable. When youre ready to replenish the fund, record the expenses in your accounting software based on the petty cash expense log. The discount allowed is entered along with cash received or paid to a party on the same time and on the same side of the book, although in different columns. Petty cash book is a book of account where minor expenses that cannot be conveniently entered into the cash book are recorded. May 14, 2017 the petty cash journal entry is a debit to the petty cash account and a credit to the cash account.
Take the cash, buy the item, put the change and the receipt back into the box. Option one to record expenses and replenish petty cash at the same time, finish with this entry write a cheque. This initial setup amount is sometimes referred to as your float. The petty cash custodian refills the petty cash drawer or box, which should now contain the original amount of cash that was designated for the fund.
Available in png, ico or icns icons for mac for free use. At the end of an accounting period a count of the petty cash shows that the fund contains cash of 240 and expense vouchers for supplies of 40 and postage of 20. Most businesses keep a small amount of cash on the premises to make occasional small payments in cash, e. Thus, the book is part of a manual recordkeeping system. As a result, companies keep and maintain a petty cash book, so all such transactions, which are small or insignificant in nature can be recorded under one head. As the petty cashier has to account for his expenses, before he can draw further sums, the petty cash book remains up to date. Balancing is done the same way as in the case of cash and discount column. Edufount business studies jss 1 first term scheme of. When you give cash to an employee or use petty cash yourself, record it with a slip of paper to track who, when, and what the money was used for.
As time passes, more categories can be added for refinement. The person who keeps the petty cash book is called the petty cashier. Using cash is a much easier way to pay for these types of petty expenditures. The cash allocated for petty expenditures for a specific period is entered on the credit side of general cash book and on the debit side of petty cash book. Buy petty cash book and get the best deals at the lowest prices on ebay. When the petty cash fund gets too low, you must refill it to its set amount. Petty cash balance after reimbursement reverts to back to the level of the float. Your petty cash book format should be similar to the following entry.
Petty cash book explanation, format, example, ordinary and imprest. It is important to understand that at all times the total of the cash held plus the petty cash vouchers should equal the original imprest fund. Scroll down to step 2 below for a completed example. The petty cashier makes payments from this amount and records them in petty cash book.
A petty cash book can either be a simple petty cash book or an analytical petty cash book. Required a state one advantage of the imprest system of petty cash. Petty cash log template and guide to using cash box. These small expenditures are usually paid using coins and currency notes rather than checks. Buy your cheap petty cash books at aos online today.
The petty cash book is a record of the petty cash expenditures, which are sorted by date. The employee, who keeps the petty cash book, is called petty cashier. Each entry in the petty cash book should include the date, the amount, and what was purchased with the petty cash. Kashif hashmi executive coordination enar petroleum refining. Also included as a part of cash are the balances kept at banking and financial institutions. Petty cash meaning, examples accounting for petty cash.
In this post, youll find out how to create and maintain a log of miscellaneous expenses using. Petty cash book explanation, format, example, ordinary and. The strong spiral binding allows pages to lay flat while writing, and the white, canary paper sequence provides a copy of all payments received. May 28, 2019 to track the cash, create a petty cash account in the asset section of your chart of accounts. Petty cash book format example definition explanation. Dec 15, 2020 the petty cash book is a useful control over petty cash expenditures, since it forces the petty cash clerk to formally record all cash inflows and cash outflows.
Petty cash replenishment refers to the process of restoring the cash balance in the petty cash fund back to its original imprest amount. Single column cash book, double column cash book, treble column cash book. This template was designed to be used not only as a petty cash book, but to give a daily and monthly overview of your real cash. Free petty cash icon petty cash icons png, ico or icns. The petty cash fund is an accounting tool that helps you to manage and track small purchases that are not appropriate to make a check payment or using your credit card.
Every time a payment is made through petty cash, it is recorded in the petty cash register usually by the cashier. The head cashier scrutinises the petty payments and gives amount equal to the amount spent by petty cashier so that the total amount with the petty cashier. Review your petty cash register before you replenish the petty cash fund. Petty cash book download a template you can start using today. Prepare journal entries to record a establishment of the fund and b reimbursement of the fund at the end of the current period. Petty cash book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc. Generally, the petty cash book is a real ledger book that is a part of the manual recordkeeping system. Petty cash book explanation, format, example, ordinary. All receipts are recorded on the debit side and all payments are recorded on the credit side of petty cash book by the petty cashier. When a payment is to be made out of the petty cash fund, a petty cash voucher pcv is prepared by the petty cashier. Keep this log readily available so you can fill it in on a regular basis taking the information off the petty cash vouchers. Petty cash book is a type of cash book, which use to record small amount of receipts and payment.
The specimen performa of a simple cash book is given as follows. Cash book is a subsidiary book which records the receipts and payment of cash. Cash count shall be performed at the end of each day by the petty cashier and reconciled to the book balance of the cash on hand. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it. The entry to replenish a petty cash fund includes a credit to a. The simple petty cash book has only two amount columns. A separate book of account called petty cash book is maintained for recording cash payments for the current expenses. This is often called the cash float or petty cash account. Besides maintaining a main or general cash book, many companies also maintain a small cash book known as petty cash book to record small day to day expenditures of the business.
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