Cambridge IGCSE and O Level Accounting

1.5 Introducing petty cash books

Syllabus reference: 2.3
Learning aims: 1 explain the use of, and process, accounting data in the petty cash book
2 explain and apply the imprest system of petty cash
Prior knowledge: Double entry and cash books
Resources: Coursebook Chapter 5
Workbook Part 2 Section 1 Multiple choice questions 13–15
Workbook Part 2 Section 1 Structured question 23
Worksheet 1.5
You will also need:
Flashcards on petty cash terms
PowerPoint or slide with a template of a petty cash book
Handout with a template of a petty cash book
Handout with a few calculations of restoration of the imprest
Handout with petty cash book exercises

Suggested activities
1 Share the learning aims and outcomes with the students and write on the board or use a 1
pre-prepared slide or PowerPoint
2 Explain to the class the need for a petty cash book
Build up a list of reasons on a board, flip chart, slide, etc.
3 Display a template of a petty cash book and explain the use of the columns
4 Explain the imprest system
5 Practical exercise as follow-up
Students work individually to complete short arithmetical calculations on the restoration of the
imprest.
6 Use of flashcards on petty cash terms
Flashcards with petty cash terms on them could be used and students asked to explain each
term. Alternatively this can be done in pairs.
7 Demonstrate writing up a petty cash book
Use an exercise on a handout to demonstrate the preparation of a petty cash book.
Individual students could be invited to make entries on the board.
8 Practical exercise as follow-up
Students work individually to complete an exercise writing up a petty cash book.

© Cambridge University Press 2018

Cambridge IGCSE and O Level Accounting

9 Follow-up in next lesson

More difficult petty cash books including posting to the ledger.
Exercises involving the preparation of both a petty cash book and a three column cash book.
Tasks for more confident students could include:
1 Considering how the double entry can be made for the items recorded in the petty cash
book.
2 Preparing and completing petty cash vouchers for use in future lesson by other students
3 Considering exactly how the imprest system may reduce fraud.
10 Homework (or class work at the start of next lesson)
Worksheet 1.5

© Cambridge University Press 2018