Petty cash is a key part of the free Processing Bookkeeping Transactions Course and Accounting Trainees must know how to record payments and receipts.
You are part way through the FREE Processing Bookkeeping Transactions Course and you should have read the pages listed below before reading this page:
Welcome to accounting for Petty Cash.
We studied the Cash Book in the previous chapter, but the petty cash book as its name implies is used to record minor amounts of expenditure, such as tea and coffee, postage stamps etc. In themselves they may be petty but in total they soon add up to be significant amount and must be accounted for.
The petty cash book and the imprest system used to balance the float are very popular with Accounting and ICB examiners, and you must understand the relationship between the cash book and the petty cash book.
You must be able to explain the nature and purpose of the financial documents behind the petty cash book such as vouchers and receipts and be able to record them in the correct column of the petty cash book.
It is often the Bookkeeper’s or the Accounting Trainee’s job to act as the petty cashier and to keep a petty cash box under lock and key.
Now lest test you knowledge of the petty cash book – try the quiz below.
Here is the link to Amazon for the course books:
Quiz : Petty Cash Book
Leaderboard for Petty Cash Book1. mmm-33 Points
2. -33 Points
3. -33 Points
4. MOOKETSI BOSEJA-33 Points
5. Memyselfi-33 Points