Chapter 10

Maintaining petty cash records

TOPIC LIST

1. The purpose of petty cash (គោលបំណងនៃគបឡាលំអិត ឬរជ្ជគេយ្យបុគរប្បទាៃ)

2. Security and control of petty cash (សុវតថិភាព ៃិងការប្រប់ប្រងគបឡាលម្អិត)
3. The imprest system
4. Petty cash vouchers
5. The petty cash book
6. Recording and analysing petty cash transactions
7. Recording petty cash transactions: sales tax
8. Topping up the float, balancing off and posting petty cash
1 The purpose of petty cash

▪ Petty cash is used to make small payments with notes and coins.
▪ The cash must be kept safe, in a locked box or tin, and its security is
the responsibility of a petty cashier.
▪ Payments must be properly authorised, and all transactions should be
supported by receipts and vouchers.
1 The purpose of petty cash

1.1.What items are paid for out of petty cash?

▪ Petty cash payments should be for small items of expense for which payment in
notes and coin is required.
▪ Different organisations have different rules about what can be paid for out of
petty cash.
▪ Not all businesses have a policy of providing an official list of allowable items for
petty cash, and they rely instead on an informal system of judgement by the
petty cash officer or their supervisor.
 1 The purpose of petty cash

1.1.What items are paid for out of petty cash?

Here are some typical expenses, limits and recipients for payments out of petty cash
1.2 Who gets paid out of petty cash?
2.Security and control of petty cash
• The petty cashier :
• the cash is held in a safe place.
• They will make the actual payments of cash
• all payments are properly authorized
• Petty cash box must be kept secure.
• Limiting the size of petty cash payments
• Payments out of petty cash should be properly authorised by the appropriate
person.
• If there is no receipt to support a claim for payment, the petty cashier should
refer the claim to their supervisor.
3 The imprest system
▪ The imprest system is a system in which there is a maximum amount of
money in petty cash, the imprest amount.
▪ The imprest amount varies from one organisation to another, and might be
enough to make petty cash payments for about one month.
example
4. Petty cash vouchers
• Whenever a payment is made out of petty cash the petty cashier will
produce a petty cash voucher.
• The receipt for the expense incurred will be attached to this voucher
as part of the petty cash records.
4. Petty cash vouchers
• IOUs and petty cash :In some organisations, some individuals are
permitted to borrow money from petty cash for a day or so, but they
must of course pay the money back.
5. The petty cash book
• At regular intervals, details of payments out of petty cash are
recorded from the vouchers into the petty cash book.
• Vouchers should be in date order and numbered sequentially and
they should be entered into the petty cash book in this order.
6 Recording and analysing petty cash transactions
7. Recording petty cash transactions: sales tax
• When the sales tax element in petty cash expenditure is recorded,
there must be a sales tax receipt as evidence of the payment, and an
analysis column for sales tax in the petty cash book.
8. Topping up, balancing off and posting petty cash.

1) Cast and cross-cast columns in petty cash book

2) Count cash and vouchers in petty cash box
3) Calculate amount of, and prepare, cheque requisition and cheque
4) Specifying notes and coins required, cash cheque at bank and put
cash in box, enter in petty cash book
5) Balance off petty cash book
6) Check balancing off
7) Post totals to general ledger
8. Topping up the float, balancing off and posting petty cash

• A new page in the petty cash book is started whenever the imprest float is topped
up. When the imprest float is topped up, a sequence of procedures must be
followed.

Step 1 Total the payment columns in the PCB.

example
• The imprest amount is $250, and at the end of March the petty
cashier decides to top up the float in the petty cash box.