As the cash book lists bank
payments & receipts, a petty cash
book is needed to record actual
cash transactions.
Voucher is a form which shows what
a payment is for .
Imprest systems is a system
by which a refund is made
of the total paid out in a
period.
A worked example of a petty cash book:
Step 1
Enter date and details of each payment .Put in the
total column.
Step 2 For step 1 also put the amount in the column for the
type of expense.
Step 3 At the end of each period,add up the totals column
Step 4 Now add up each of the expense columns. The total
of Step 3 should equal the total of all the expense
column
Step 5 Then balance off the petty cash book ,carrying down the petty
cash in hand balance to the next period
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 a
the amount spent is reimbursed on 28 Feb.Show the balance carried down to 1 March
Year 8
$
Feb 1 Letterheadings
32
2 F.Lee-casual labour
15
2 Unique Motors- motor repairs
33
4 Petrol
27
5 Paper clips
10
8 Envelopes
12
9 Cleaning materials
15
11 C.Hop- casual labour
27
13 Mr.Ng-cleaner
21
16 Typewriter ribbons
24
18 Motor taxation
60
21 K.Kwan - casual labour
20
Also show how the items for motor expenses and office expenses would appear in the
general ledger.
Petty Cash Book
Receipts Date
$ Year 8
600 Feb-01
1
2
2
4
5
8
9
11
13
16
18
21
Details
Voucher
No
Total
$
Bank
Letterheading
F.Lee Causel Labour
Unipue Motors
Petorl
Paper clips
Envelopes
Cleaning materials
C.Hop-Causel Labour
Mr.ng-cleaner
Typerwriter ribbons
Motor taxation
K.kwan-Causel Labour
28 Bal c/d
600
296 Mar-01 Bal b/d
304
Bank
1
2
3
4
5
6
7
8
9
10
11
12
296
304
600
32
15
33
27
10
12
15
27
21
24
60
20
Office
Exp
$
Motor
exp
$
Cleaning Causel
Exp's
Labour
$
$
32
15
33
27
10
12
15
27
21
24
60
78
120
36
20
62
General Ledger
Motor Expenses
Year 8
Feb 28
$
Petty cash
120
Office expenses
Year 8
Feb 28
$
Petty cash
78
Now you know how to
prepare a petty cash book ???
Exercise
Year 3
May 1
3
5
8
12
17
20
23
25
27
The cashier hands a cheque for$100 to the petty
cashier to enable him to obtain cash for the
starting float of petty cash
$
Stationery
Voucher No. 1
5.6
Postage
Voucher No. 2
8.7
Cleaning expenses
Voucher No. 3
15.2
Payment of amount to K Sutton in the
purchases ledger
Voucher No. 4
27.4
Postage
Voucher No. 5
6.3
S-Small- travel exp.
Voucher No. 6
4.5
Stationery
Voucher No. 7
3.2
Cleaning expenses
Voucher No. 8
12.4
Telephone phone bill
Voucher No.9
1.2
29 Postage
Voucher No. 10
6.3
31 The cashier reimburses the petty cashier the amount paid out to date
Receipts Date
$
100
1.2
Year 3
May-01
3
5
8
12
17
20
23
25
27
29
Details
Bank
Stationery
Postage
Cleaning
K Sutton
Postage
S Smalltravel
Stationery
Cleaning
Telepone
Postage
31 Bal c/d
101.2
11.6
88.4
Bal b/d
Bank
Petty Cash Book
Voucher Total Postage Stationery
No
$
$
$
1
2
3
4
5
6
7
8
10
5.6
8.7
15.2
27.4
6.3
Travel Cleaning Ledger Ledger
Exp's
Folio Accounts
$
$
$
5.6
8.7
15.2
PL1
27.4
6.3
4.5
3.2
12.4
6.3
6.6
89.6
21.3
11.6 GL 1
101.2
4.5
3.2
12.4
8.8
GL 2
4.5
GL 3
27.6
GL 4
27.4
General Ledger
Postage
Year 3
$
May 31 Petty cash 21.3
Stationery
Year 3
$
May 31 petty cash 8.8
Travel Exp.
Year 3
$
May 31 Petty Cash 4.5
Cleaning
Year 3
$
May 31 Petty Cash 27.6
General Ledger
Bank
Year 3
May 1 Petty Cash
Jun 1 Petty Cash
Purchases Ledger
K Sutton
Year 3
$
May 31 Petty Cash 27.4
$
100
88.6
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