As can be seen the petty cash fund, which originally contained the imprest money of 100 in cash, now contains two petty cash vouchers for a total of 65, and the remaining cash held of 35.

The na_rn cookie is used to recognize the visitor upon re-entry. It allows to record details on user behaviour and facilitate the social sharing function provided by Addthis.com. In a pinch, petty cash is sometimes used to provide change for customers when your tills are out. So it’s really not worth risking running out of petty cash. Employees may be issued with bank debit cards. This has the disadvantage of not obtaining all receipts and having a high number of transactions that aren’t recognised in the bank. It might also provide an employee with limitless cash that isn’t agreed upon. As can be seen this journal effectively transfers the amount of 100 from the cash account to the petty cash account. It is important to note that having established the imprest fund of 100, providing the amount of the imprest money is not altered, no further postings are made to the petty cash account in the general ledger. Paying Expenses from the Petty Cash FundWhen there is a shortage of cash, we record the shortage as a “debit” and this has the same effect as an expense. If we have an overage of cash, we record the overage as a credit, and this has the same impact as if we are recording revenue. If there were cash overage, the petty cash account would be debited and the cash over and short account would be credited. In this case, the expense balance decreases, and the year-end balance is the net balance from all overages and shortages during the year. This cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.

You should also issue a cash receipt when receiving cash from customers. It can be a simple form, or cash receipt books are available. How do I Manage Petty Cash Procedures? There’s a reason why petty cash has lasted as some other business expense concepts have adapted to the digital age. Unless there are any discrepancies in the fund, the cash needed to replenish the fund is also equal to the value of the expenses paid, which in turn, is equal to the value of the supporting petty cash vouchers. are not subject to the Creative Commons license and may not be reproduced without the prior and express written

Its ease and convenience are the main reasons that businesses have continued to use a petty cash system – giving team members immediate access to resources as and when they’re needed. Designed to assist in managing your business’s petty cash log, this free template is easy to use and will save time on your reconciliation. Free Petty Cash Log Excel Template It is important to realize that at all times the total of the cash held plus the petty cash vouchers should equal the original imprest fund. Cash held + Petty cash vouchers = Fixed imprest amount

Many organisations have a standard method that should be followed for each withdrawal. However, it can vary depending on the size of your business. The above voucher shows 50.00 was taken from the petty cash fund, a change of 14.52 was returned, the remaining 35.48 was spent, and the receipt was attached to the voucher. Petty Cash Transactions Start by calculating the petty cash account opening balance to do the reconciliation. Then list all the money that has been received or spent. The balance should equal the actual cash remaining in the float. The cash from the cash account replenishes the petty cash fund, and at the same time the journal records the expenses in the correct expense account. Again, it is important to realize that no entry has been made to the petty cash account, this remains fixed at the original imprest amount of 100.

FAQs on Cash Voucher Format

Large businesses keep more in the kitty because they use it more frequently than smaller businesses. They also ensure enough funds so they won’t run out when needed. What is a Petty Cash Voucher? A cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface. MediaMath sets this cookie to avoid the same ads from being shown repeatedly and for relevant advertising.