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Petty Cash

Petty Cash. This lesson will cover. What is Petty Cash The Petty Cashier Recording the Opening Balance – float Recording the expenses Balancing the account Restoring the Imprest. What is Petty Cash. Petty Cash is a small amount (Petite) of money available for small purchases.

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Petty Cash

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  1. Petty Cash

  2. This lesson will cover • What is Petty Cash • The Petty Cashier • Recording the Opening Balance – float • Recording the expenses • Balancing the account • Restoring the Imprest

  3. What is Petty Cash • Petty Cash is a small amount (Petite) of money available for small purchases. • For example; stamps, a taxi fare, tea/coffee etc. • It would not be used to buy larger items such as IT equipment, vehicles or furniture for example.

  4. Which of the following items would be purchased through Petty Cash?

  5. The Petty Cashier • The Petty Cashier is the person responsible for the Petty Cash.

  6. Key Terms • Petty Cash – small expenses • Petty Cashier • Analysis • Imprest

  7. Petty Cash Wordle

  8. Benefits of Petty Cash • Enables the business control small expenses • Vouchers can be checked against money paid • Enables small cash payments that would be awkward or expensive to pay by cheque (37c per cheque)

  9. 1. Receives an Opening Balance The Petty Cashier Receives an Opening Petty Cash Balance (float). This is recorded in the Debit of the Petty Cash book. For example, the Petty Cashier receives €200 at the beginning of January for the Petty Cash float.

  10. Petty Cash • Petty Cash

  11. 2. Receives a request for funds. During the month, the Petty Cashier is asked to pay small expenses. For example, Jan. 3rd Postage €2.50 Usually a receipt is attached • Petty Cash • Petty Cash

  12. 3. Completes the Petty Cash voucher. The request for funds is accompanied by a completed petty cash voucher. • Petty Cash • Petty Cash

  13. 4. Receives authorisation for payment. The voucher needs to be signed by the person seeking the money and by the person authorising payment. • Petty Cash • Petty Cash

  14. 5. Pays the expense The Petty Cashier pays the cash and files the voucher. • Petty Cash

  15. 6. Records the payment The payment is recorded in the Credit of the Petty Cash book • Petty Cash

  16. Petty Cash • Petty Cash

  17. 7. Balances the Petty Cash book At the end of the month, the Petty Cashier balances the petty cash book. • Petty Cash

  18. Petty Cash

  19. 8. Requests Imprest to restore balance The Petty Cashier identifies the imprest and request payment from Finance to restore the balance to its original sum to begin the next month. • Petty Cash

  20. Petty Cash

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