But in the main Cash Book all receipts (big and small) and large expenses are recorded.

Petty cash funds set up for subject payments are limited to subject payments and cannot be used to pay for other types of expenses.
Petty Cash Custodian: The Petty Cash Custodian is responsible for:. In these cases, the clerk can replenish what has been taken out once a month in order to keep track of the expenditures and help with the accounting of the petty cash. These types of transactions require more time and paperwork to complete. A petty cash book is generally maintained on a columnar basis – a separate column being allotted for each type of expenditure.

The basic process of setting up a petty cash system is: Location.Decide upon the locations where petty cash funds will be installed. Petty cash accounting involves establishing a petty cash policy, setting up a petty cash log, creating journal entries, and reconciling the petty cash account. Definition of Petty Cash Voucher. The fundamental difference between the Main Cash Book and the Petty Cash Book is that only petty expenses are recorded in the Petty Cash Book.

Most businesses won’t keep more than a few hundred dollars in petty cash around. Uses of Petty Cash Book It's a cash book used to enter daily petty expenses like cost of stationery, postage and Xerox copy and so on.
When you return from Staples, deposit the receipt for the pens along with any remaining change (let’s say it’s $3.67 in this case) back into the lockbox, and make a corresponding entry in the petty cash log. A petty cash system is a set of policies, procedures, controls, and forms that a company uses to dispense cash for various miscellaneous needs, such as office supplies and services. The petty cash book will be maintained by a separate cashier known as petty cashier in the accounting field. What is petty cash?

The payment can be used to reimburse staff members for small expenditures that don’t exceed $25.00, such as cab fare, office supplies, postage, etc. Petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel, newspapers, cleaning, pins, and causal labor etc.

Many financial officers agree that, in certain cases, it is not cost effective — not to mention a waste of time — to issue a check for small business expenditures. For example tea, Xerox copy etc. To account for petty cash, create a transaction log that covers the date, the person who used the petty cash, a description of the transaction, and any other deposits or expenses. Petty cash is simply any physical cash your business keeps on hand to pay for small, unplanned expenses. The petty cash voucher should provide space for the following:

At times, every business finds it convenient to have small amounts of cash available for immediate payment of items such as delivery charges, postage stamps, taxi fares, supper money for employees working overtime, and other small items.

A petty cash voucher is usually a small form that is used to document a disbursement (payment) from a petty cash fund.Petty cash vouchers are also referred to as petty cash receipts and can be purchased from office supply stores.. They’ll usually keep it in a lockbox or a cash register, and will have some kind of system in place to make sure none of it gets lost. Petty cash funds. For example, you can use petty cash to pick up some printer paper or … You'll also want to purchase a lock box for the cash and receipts.

PETTY CASH PROCEDURE GUIDE Statement This policy establishes the proper uses and administration of petty cash funds. A petty cash fund is a small amount of money, usually under $500, used to cover incidentals.