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    Petty Cash Book B

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    gnanaselvi88
    The document provides instructions on preparing a petty cash book. It explains that a petty cash book is used to record actual cash transactions, as the main cash book only records bank payments and receipts. It provides a worked example of recording petty cash transactions with analysis columns for different expense types. It also shows how the expense totals would be posted to the relevant accounts in the general ledger.

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    Petty Cash Book B

    Uploaded by

    gnanaselvi88
    313 views15 pages
    The document provides instructions on preparing a petty cash book. It explains that a petty cash book is used to record actual cash transactions, as the main cash book only records bank payments and receipts. It provides a worked example of recording petty cash transactions with analysis columns for different expense types. It also shows how the expense totals would be posted to the relevant accounts in the general ledger.

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    petty cash book for reference which use to do calculation using specified document

    Original Title

    Petty Cash Book b

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    The document provides instructions on preparing a petty cash book. It explains that a petty cash book is used to record actual cash transactions, as the main cash book only records bank payments and receipts. It provides a worked example of recording petty cash transactions with analysis columns for different expense types. It also shows how the expense totals would be posted to the relevant accounts in the general ledger.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    313 views15 pages

    Petty Cash Book B

    Uploaded by

    gnanaselvi88
    The document provides instructions on preparing a petty cash book. It explains that a petty cash book is used to record actual cash transactions, as the main cash book only records bank payments and receipts. It provides a worked example of recording petty cash transactions with analysis columns for different expense types. It also shows how the expense totals would be posted to the relevant accounts in the general ledger.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 15

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

    transactions.

    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 out in a period.

    A worked example of a petty cash book:


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

    Write up a petty cash book,with analysis columns for office expenses,motor expenses ,cleaning expenses and casual labour.The cash float brought down is $600 a the amount spent is reimbursed on 28 Feb.Show the balance carried down to 1 March Year 8 $ Feb 1 Letterheadings 32 2 F.Lee-casual labour 15 2 Unique Motors- 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.Ng-cleaner 21 16 Typewriter ribbons 24 18 Motor taxation 60 21 K.Kwan - casual labour 20 Also show how the items for motor expenses and office expenses would appear in the general ledger.

    For example:

    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.Lee Causel Labour Unipue Motors Petorl Paper clips Envelopes Cleaning materials C.Hop-Causel Labour Mr.ng-cleaner Typerwriter ribbons Motor taxation K.kwan-Causel Labour 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 $ 32 15 33 27 10 12 15 27 21 24 60 78 120 36 20 62 Motor exp $ Cleaning Causel Exp's Labour $ $

    28 Bal c/d 600 296 Mar-01 Bal b/d 304 Bank

    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 ???

    Year 3 May 1

    Exercise
    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. 1 5.6 Postage Voucher No. 2 8.7 Cleaning expenses Voucher No. 3 15.2 Payment of amount to K Sutton in the purchases ledger Voucher No. 4 27.4 Postage Voucher No. 5 6.3 S-Small- travel exp. Voucher No. 6 4.5 Stationery Voucher No. 7 3.2 Cleaning expenses Voucher No. 8 12.4 Telephone phone bill Voucher No.9 1.2 Voucher No. 10 6.3

    3 5 8 12
    17 20 23 25 27

    29 Postage

    31 The cashier reimburses the petty cashier the amount paid out to date

    Receipts Date $ 100 Year 3 May-01 3 5 8 12 17 20 23 25 27 29

    Details

    Petty Cash Book Voucher Total Postage Stationery No $ $ $ 1 2 3 4 5 6 7 8 10 5.6 8.7 15.2 27.4 6.3 4.5 3.2 12.4 6.3 6.6 89.6 21.3 11.6 GL 1 101.2 5.6 8.7

    Travel Cleaning Ledger Ledger Exp's Folio Accounts $ $ $

    1.2

    Bank Stationery Postage Cleaning K Sutton Postage S Smalltravel Stationery Cleaning Telepone Postage

    15.2 PL1 6.3 4.5 3.2 12.4 27.4

    31 Bal c/d 101.2 11.6 88.4 Bal b/d Bank

    8.8 GL 2

    4.5 GL 3

    27.6 GL 4

    27.4

    General Ledger
    Postage
    Year 3 $ May 31 Petty cash 21.3 Stationery Year 3 $ May 31 petty cash 8.8 Travel Exp. Year 3 $ May 31 Petty Cash 4.5 Cleaning Year 3 $ May 31 Petty Cash 27.6

    General Ledger
    Bank Year 3 May 1 Petty Cash Jun 1 Petty Cash $ 100 88.6

    Purchases Ledger
    K Sutton

    Year 3 $ May 31 Petty Cash 27.4

    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 ,the cashier reimburses the petty cashier the amount spent in the that period ,so as to make up

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