cash expenditures for a regular period.
Neither too small nor too big
Once the board has determined how large a fund is needed, a check can be written to the petty cash custodian to establish the petty cash fund.
－how much money should be available in the
petty cash reserve －a maximum expenditure which can be paid with petty cash
The fund should be enough to cover petty
Note 2:
The clerk in charge of the petty cash must not pay out any petty money without a voucher.
Petty Cash Voucher
A voucher is a written record of disbursement, it is used for the management of the petty cash.
Petty Cash Voucher
A voucher is a written record of disbursement, and is used for the management of the petty cash.
Note 1:
It must be signed by the person receiving the money and the person authorizing the payment.
Introduction
Petty cash is used for: tea, coffee, milk and sugar for the office staff, bus or taxi
fares, parking fees, postage stamps, cleaner’s wages, and small items of office stationery.
The Imprest System
The petty cash account is usually kept on a system called the imprest system. A sum of money equal the
amount which has been spent is disbursed at the end of a regular period – usually a week or a month.
Reimbursements from a Petty Cash Fund
In some cases, the company may permit an advance from petty cash to cover an upcoming purchase.
Note 3: The vouchers should be numbered for filing purpose. Note 4: A receipt should be produced for
anything bought out of petty cash.
Note 5: Vouchers can be printed by
secretary; pads of petty cash vouchers can be purchased in some stationery stores.
Petty Cash Voucher
A Sample Petty Cash Voucher
Reimbursements from a Petty Cash Fund
Chapter 14
Petty Cash Management
Introduction
What is Petty Cash?
small
The small amount of cash that is available for payment of small items.
Necessary cash for every firm Without the services of a bank
The person in charge of petty cash is:
secretary—In a small or medium size firm a senior clerk —in a big company
often called a petty cash custodian
Where is Petty Cash Stored?
It must be kept in a lockable cash box with a removable tray, and the box must be locked in a cupboard.
bank notes stored under the tray
coins stored on the tray
2000

balance
483 1715
2000
At the beginning
At the end
At the next beginning
The petty cash fund
The Imprest System
The company management should develop a policy:
In reimbursement the proof of purchase is very important.
make a small purchase
get a receipt
Get the voucher approved
complete a petty cash voucher
reimbursement