a petty cash book is needed to record actual cash .As the cash book lists bank payments & receipts.

.Voucher is a form which shows what a payment is for .

Imprest systems is a system by which a refund is made of the total paid .

The of Step 3 should equal the total of all the expense column Step 5 Then balance off the petty cash book .A worked example of a petty cash book: Step 1 Step 2 the Step 3 Step 4 total Enter date and details of each payment .add up the totals column Now add up each of the expense columns.Put in the total column. At the end of each period.carrying down the petty cash in hand balance to the next period . For step 1 also put the amount in the column for type of expense.

motor expenses . Year 8 $ Feb 1 Letterheadings 32 2 F.with analysis columns for office expenses.cleaning expenses and casual labour.Kwan .casual labour 20 Also show how the items for motor expenses and office expenses would appear in the general ledger.Ng-cleaner 21 16 Typewriter ribbons 24 18 Motor taxation 60 21 K.motor repairs 33 4 Petrol 27 5 Paper clips 10 8 Envelopes 12 9 Cleaning materials 15 11 C. .Hop.casual labour 27 13 Mr.or example: Write up a petty cash book.The cash float brought down is $600 and the amount spent is reimbursed on 28 Feb.Show the balance carried down to 1 March .Lee-casual labour 15 2 Unique Motors.

Hop-Causel Labour Mr.Lee Causel Labour Unipue Motors Petorl Paper clips Envelopes C leaning m aterials C.kwan-Causel Labour 28 Bal c/d 600 296 M ar-01 Bal b/d Bank 304 1 2 3 4 5 6 7 8 9 10 11 12 296 304 600 32 15 33 27 10 12 15 27 21 24 60 20 Office Exp $ Motor exp $ Cleaning Causel Exp's Labour $ $ 32 15 33 27 10 12 15 27 21 24 60 78 120 36 20 62 .Petty Cash Book Receipts Date $ Year 8 600 Feb-01 1 2 2 4 5 8 9 11 13 16 18 21 Details Voucher No Total $ Bank Letterheading F.ng-cleaner Typerwriter ribbons Motor taxation K.

General Ledger Motor Expenses Year 8 Feb 28 $ Petty cash 120 Office expenses Year 8 Feb 28 $ Petty cash 78 .

Now you know how to prepare a petty cash book ??? .

4 Telephone phone bill Voucher No.2 Payment of amount to K Sutton in the purchases ledger Voucher No. 1 5.4 Postage Voucher No.5 Stationery Voucher No. 6 4. 7 3. 5 6.3 S-Small. 3 15.3 31 The cashier reimburses the petty cashier the amount paid out to date . 4 27.6 Postage Voucher No. 8 12.9 1.2 Cleaning expenses Voucher No. 10 6.travel exp.7 Cleaning expenses Voucher No. Voucher No. 2 8.2 29 Postage Voucher No.Exercise Year 3 May 1 3 5 8 12 17 20 23 25 27 The cashier hands a cheque for$100 to the petty cashier to enable him to obtain cash for the starting float of petty cash $ Stationery Voucher No.

2 27.Receipts Date $ 100 1.2 12.3 4.2 11.6 8.4 4.7 15.5 3.6 8.4 6.4 6.2 6.4 Travel Cleaning Ledger Ledger Exp's Folio Accounts $ $ $ 5.4 Bal b/d Bank Petty Cash Book Voucher Total Postage Stationery No $ $ $ 1 2 3 4 5 6 7 8 10 5.5 3.6 GL 1 GL 2 101.8 11.2 12.6 21.6 89.4 .3 8.2 PL1 27.3 6.6 GL 4 27.5 GL 3 27.3 4.2 Year 3 M ay-01 3 5 8 12 17 20 23 25 27 29 Details Bank Stationery Postage Cleaning K Sutton Postage S Smalltravel Stationery Cleaning Telepone Postage 31 Bal c/d 101.7 15.6 88.

8 Travel Exp. Year 3 $ May 31 Petty Cash 4.6 .5 Cleaning Year 3 $ May 31 Petty Cash 27.3 Stationery Year 3 $ May 31 petty cash 8.General Ledger Postage Year 3 $ May 31 Petty cash 21.

General Ledger Purchases Ledger Bank Year 3 May 1 Petty Cash Jun 1 Petty Cash K Sutton Year 3 $ May 31 Petty Cash 27.6 .4 $ 100 88.

the cashier reimburses the petty cashier the amount spent in the that period .so as to make up the cash float.Revision Notes • The petty cash book saves 1) the main cash book 2)the ledger accounts from containing a lot of trivial details • The use of the petty cash book enables the chief cashier to delegate this type of work to a more junior member of staff • Under the imprest system.at the end of a period . .