PETTY CASH BOOK
MEANING:
IMPREST SYSTEM: This is a system for recording petty cash transactions, which are paid out of a cash float. The system is set up by giving a specified sum known as cash float, to the cashier in order to cover petty expenses during the period.
PETTY CASH BOOK: This is the book of original or prime entry which is used for recording small disbursements or expenses e.g., postages, stationery, transport, etc. it is part of the double entry system. The source documents are invoices, receipts, and vouchers
PROCEDURES OF PETTY CASH BOOK:
- Amount of float from the main cash book
CR; CASH BOOK
DR : PETTY CASH BOOK
2. RULING OF PETTY CASH BOOK
Credit side is wider than debit side
Credit side : Analysis columns: Debit side : Receipt side
3. Payment for expenses
Credit Petty cash with payment under related expenses (analysis column)
4. Total of analysis columns: Analysis columns totaled are transferred to the debit of the nominal ledger
5. Reimbursement of petty cash
The petty cash cashier will be reimbursed at intervals to bring the amount back to the formal amount
LAYOUT OF PETTY CASH BOOK
receipt f date details v.no total postage cleaning trans.exp med exp ledge
# # # # # # #
700 cb july1 bal b/d
“ 2 cleaning 15 15
“ 3 Bola 70 70
“ 5 postage 30 30
“ 7 transport 40 40
“ 8 cleaning 20 20
“ 9 med expense 55 55
“ 10 petrol 15 15
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245 30 35 55 55 70
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245 cb “ 31 cash balc/d 700
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945 945
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700 Aug 1 bal b/d