Topic: 3 Petty cash book

In this lesson, you will learn how pretty cash book is used in a business.


Petty cash book is a amount of money kept separate in the business to pay cash for small  amount expenses 

What is the difference between cash,pretty cash and cash float? 

  • Cash consists of motes and coin easily available in the business. This is money that kept in the business's safe so that cash transactions, such as paying wages or buying goods can be done in the business.
  • Petty cash is the small amount of cash that the business keeps in a money box and Petty cashier manages it. It is used for making small cash payments. 
  • Cash floa is the amount of the money made up of various denominations that each cash register has in the morning when the business opens. Is used for change when customers pay cash for goods. 
The format of a petty cash book



Petty cash book voucher 

Petty cash voucher is an internal source document from which entries are made in the petty cash book. All the small payments are entered in this source document before they are recovered in the petty cash book.

Format of petty cash voucher 


Click on the link to see examples of petty cash book 

https://youtu.be/xpH-ZsppU4w?si=9xVP3sQ--dB6X8R4

Comments

  1. Anonymous16 August 2024 at 00:30

    I really learned something but would you emphasize more on an imprest system

    ReplyDelete
  2. Pennie Lucgo16 August 2024 at 07:40

    An imprest system is the system according to which the petty cash float is restored each month by a pay6of cash exactly equal to the total spent. An imprest amount is the fixed amount maintained in the petty cash account at the start of every month. I think I make it clear now😊

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