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Why do organizations use a petty cash book?
To record small cash expenditures such as postage, travel, and stationery.
100
100
In this type of business, where are cash sales paid directly?
Into the Bank
What does the bank cash book usually contain?
Only bank columns and discount columns
If the imprest is $600 and $505 was spent, how much cash should remain?
$95
What type of book is the petty cash book considered?
a book of original entry
What happens at the end of the month in the petty cash book?
the book is balanced off
What is the fixed sum of money given at the start of each period called?
a cash float
What is the first step when recording a petty cash transaction?
enter the date
200
200
In a business that has both a petty cash book and a cash book, what is the cash book often called?
a bank cash book
300
-300
Q:what is a petty cash book
a small book for cash payments
What is the imprest system?
A system where the petty cashier is given a fixed amount of cash, replenished at the end of each period to the original amount.
What two details must a petty cash voucher include?
The expense details and the amount spent.
What happens to the petty cash book at the end of the month?
It is totalled, balanced, and double entry postings are made to the general ledger.
What document is completed to reclaim money spent on behalf of the organization
a petty cash voucher
How much is required to restore the imprest to $600 in this example?
$505
400
-400
What is done after entering the voucher details?
The voucher is numbered and recorded in the ‘voucher number’ column.
What is the fixed sum of money given at the start of each period called?
a cash float
What document is usually used to claim reimbursement of money paid out?
A Petty Cash Voucher
500
500
What is one advantage of using a petty cash book?
It frees up the main cashier/accountant to focus on other work
Name two source documents used in drawing up a petty cash book
Petty cash vouchers and receipts.