Unit 13 - Petty Cash
A petty cash book is a formal record of the expenditures that are associated with petty cash and are sorted via date. This book tends to be a physical ledger instead of a computer record and is a part of a system of manual record keeping. With the book, there are primarily two types of entries that are made and they include:
· Debit to record cash that is received by a petty cash clerk
· A large number of credits that reflect withdrawals of cash from the fund
The credits can be attributed to transactions that are inclusive of stamps, office supplies, flowers, meals, etc.
Procedure for processing Petty Cash Transactions
1. XYZ Ltd sends out letters to its clients and assigns a clerk to go to the post office.
2. The bookkeeper fills out a petty cash voucher with the necessary details and signs it.
3. The voucher is then signed and approved by a manager of supervisor.
4. The clerk signs the voucher upon receiving the money.
5. The bookkeeper retains the voucher in a drawer or file.
6. Upon returning to the office, the clerk presents the receipt for the stamps purchased and any other related expenses.
7. The bookkeeper attaches the receipt to the back of the petty cash voucher. If there is change, the amount of the original voucher is crossed out and replaced with the actual amount spent. The change is returned to the float (which is usually kept in a cash pan). Any changes to the description/particulars column is updated.
Example of a Petty Cash Voucher
Recording transactions in the Petty Cash Book
Write up petty cash vouchers for the following transactions.
Assignment should be submitted to email@example.com.
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MATERIAL TO COMPLETE ASSIGNMENT