PETTY
CASH BOOK.
Hello Everyone, it’s a New Day to
learn and have fun. We are focusing on the above mentioned topic today. Guyz,
am new at this so don't mind the awkward tables drawn for yesterday's topic.
Petty Cashbook is the book for recording small expenses. For example-
Postage, Stationery, Transport etc. The system for recording petty cash
transactions is called IMPEST SYSTEM. In this system, a specific amount is
given to cashier to start off accounting period. This specific amount is called
CASH FLOAT. The source document for petty cashbook are involved receipts and
vouchers.
PROCEDURES OF PETTY CASHBOOK.
1. Cash float amount.
Credit Cash book.
Debit petty cashbook.
2. Ruling the petty cashbook.
Credit side is
wider than debit side.
Credit side is
analysis column which must not be totaled intervals and the total transferred
to respective nominal ledger.
3. Reimburse the petty cash every
week or month using the imprest system to bring the amount back to the formal
account.
ILLUSTRATION:
Stanley Limited operates a Petty
Cash Book on the Imprest System. The following transactions took place in June
1990.
June 1- Received from Cashier
N3,000.
June 2- Postage N180
June 3- Traveling N120
