1. Petty Cash

2. This lesson will cover What is Petty Cash The Petty Cashier
Recording the Opening Balance – float
Recording the expenses
Balancing the account
Restoring the Imprest

3. What is Petty Cash
Petty Cash is a small amount (Petite) of money available for small purchases.
For example; stamps, a taxi fare, tea/coffee etc.
It would not be used to buy larger items such as IT equipment, vehicles or furniture for example.

4. Which of the following items would be purchased through Petty Cash?
Coffee
Printer
Birthday card
Paper
Photocopier
Lawnmower
Staples
Taxi fare
Computer Desk
Stamps

5. The Petty Cashier
The Petty Cashier is the person responsible for the Petty Cash.

6. Petty Cashier 1. Receives Opening PC 2. Receives request for funds
Debit PC book
2. Receives request for funds
3. Completes PC voucher
4. Receives authorisation for payment
5. Pays expense
6. Records payment
Credit PC book
7. Balances PC book
8. Requests Imprest to restore balance

7. Key Terms
Petty Cash – small expenses
Petty Cashier
Analysis
Imprest

8. Petty Cash Wordle

9. Benefits of Petty Cash Enables the business control small expenses
Vouchers can be checked against money paid
Enables small cash payments that would be awkward or expensive to pay by cheque (37c per cheque)

10. 1. Receives an Opening Balance
The Petty Cashier Receives an Opening Petty Cash Balance (float).
This is recorded in the Debit of the Petty Cash book.
For example, the Petty Cashier receives €200 at the beginning of January for the Petty Cash float.

11. Petty Cash Petty Cash Date Details Total V. No. Post Travel Clean
1/1/2012
Opening Bal.
200.00
Petty Cash

12. 2. Receives a request for funds.
During the month, the Petty Cashier is asked to pay small expenses. For example, Jan. 3rd Postage €2.50 Usually a receipt is attached
Petty Cash
Petty Cash

13. 3. Completes the Petty Cash voucher.
The request for funds is accompanied by a completed petty cash voucher.
PETTY CASH VOUCHER
Date:
3/1/2012
Voucher No.: 1
Details:
Postage
Amount:
€2.50
Signed:
M. Wright
Authorised by:
A. Lee
Petty Cash
Petty Cash

14. 4. Receives authorisation for payment.
The voucher needs to be signed by the person seeking the money and by the person authorising payment.
Petty Cash
Petty Cash

15. 5. Pays the expense
The Petty Cashier pays the cash and files the voucher.
Petty Cash

16. 6. Records the payment
The payment is recorded in the Credit of the Petty Cash book
Petty Cash

17. Petty Cash Petty Cash Date Details Total V. no. Post Travel Clean
1/1/2012
Opening Balance
200.00
3/1/2012
Postage 1
2.50
Petty Cash

18. 7. Balances the Petty Cash book
At the end of the month, the Petty Cashier balances the petty cash book.
Petty Cash

19. Petty Cash Date Details Total V. No. Post Travel Clean 1/1/2012
Opening Balance
200.00
3/1/2012
Postage 1
2.50
5/1/2012
Taxi 2
7.50
18/1/2012
Cleaning 3
12.00
25/1/2012 4
5.50
31/1/2012
Balance c/d
172.50
8.00
1/2/2012
Balance b/d

20. 8. Requests Imprest to restore balance
The Petty Cashier identifies the imprest and request payment from Finance to restore the balance to its original sum to begin the next month.
Petty Cash

21. Petty Cash Date Details Total V. No. Post Travel Clean 1/1/2012
Opening Balance
200.00
3/1/2012
Postage 1
2.50
5/1/2012
Taxi 2
7.50
18/1/2012
Cleaning 3
12.00
25/1/2012 4
5.50
31/1/2012
Balance c/d
172.50
8.00
1/2/2012
Balance b/d
Imprest
27.50