Thereafter total of money columns and the total of all expense columns of credit side are drawn. The difference between the amount of cash receipt and the total amount of cash payments is called balance.
Also keep records of how you obtained the funds that you used to start and replenish your petty cash funds, such as making a cash withdrawal from the bank. At the end of agreed period, the petty cashier submits the details of all expenditures incurred by him to the chief cashier.
Purchase Information Your petty cash book allows you to record Petty cash book format information about the purchases you have made.
For example, plan to count the funds and reconcile them with the amounts in your petty cash book every time you add cash.
If you manually type anything into the Totals or Bank Balance columns you will over-type the formulas and the totals will be messed up. A petty cash book is a ledger kept with the petty cash fund to record amounts that are added to or subtracted from its balance. Moreover, it creates complexities.
Quick Start Tips There is a page of quick tips notes to get you started fast with your bookkeeping.
Opportunity for the petty cashier to work comfortably As the petty cashier does not collect cash, he can pay more attention to the expenses incurred and their proper recording.
This opening balance will be the same amount as the closing balance of the previous month. Purchase Information Your petty cash book allows you to record relevant information about the purchases you have made.
So for making payment of petty expenses a petty cash fund is created as an alternative to the issue of cheques from where cash payment is made.
The total cash spent by the petty cashier during the period is reimbursed to him and the total cash available to spend at the start of the next period becomes equal to the original sum i.
When the whole amount is spent, the petty cashier submits the details of petty expenditures recorded in the petty cash book to the head or chief cashier for review.
This balance is always a debit balance. Verification of arithmetical accuracy of petty expenses Opportunity for the petty cashier to work comfortably Determination of expenses Prevention of misappropriation Labor minimization Under the imprest petty cash system as the totals of different heads of expenditures are posted in ledger accounts after a certain period, the workload of a cashier is minimized to a great extent.
Control over petty expenses Under imprest, petty cash book system petty cashier submits a statement of expenditure to the head cashier at an interval of a certain period and thereafter receives fund from him for further expenses.
Download to your computer. Fixed imprest fund The head cashier remains always aware of the cash given to the petty cashier under this system.
These fields should provide a framework for simple equations, enabling you to subtract purchase amounts from the balance and add the amounts of additional cash infusions that you make to replenish the fund.Format of petty cash book. A simple format of petty cash book is given below: Example. The petty cashier of John and James Company paid cash for the following expenditures during March March Balance brought forward; petty cash $ March The amount of petty expenditures for previous moth reimbursed by chief cashier $ Cash Book is in a way, a cash account with debit and credit side and Cash account is an asset account, so the rule followed is Increase in assets to be debited and Decrease in asset is to be credited.
40 Petty Cash Log Templates & Forms [Excel, PDF, Word] In all kinds of businesses, employees would have to handle petty cash at one time or another and it would be very useful to record everything in a petty cash. Petty Cash Book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc.
These are expenses which are incurred day after day; usually, petty expenses are large in quantity but insignificant in value.
19 rows · Petty Cash Book: It is another Cash Book which is maintained, generally, in large business.
A petty cash book is a ledger kept with the petty cash fund to record amounts that are added to or subtracted from its balance.Download