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  Petty Cash

This section about Petty Cash contains the following:

 

     1. Checking a claim for Petty Cash
     2. Steps in balancing a Petty Cash book
     3. A sample Petty Cash book
    

 

Checking a claim for Petty Cash-

It is important to check petty cash claims from staff to ensure they are eligible for reimbursement. Here are a few measures that should be taken:-
      Insist on a receipt
      Ensure the items purchased are business related and not personal items
      Make sure that only authorised people make a claim
      Set a limit for anyone claim, for example a maximum of $40 per item

 

 

Steps in Balancing the Petty Cash Book

      The Petty Cash Book must balance. This means that the total of the vouchers should equal the amount of money that has left the tin in that period.
      This is commonly called reconciliation: the total payments made is subtracted from the advance/imprest amount. This is then reconciled (accounted for) with the cash left in the tin.
      Therefore the Voucher Total column should equal the expenses/ rec'd column
as can be seen in the example on the next page. --