Petty cash is the small amount of cash that is kept on hand by a company to pay for minor, inexpensive purchases during the normal course of operations. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Usually the deposits into bank accounts maintained by a business firm, withdrawals from such accounts and cheque payments are also recorded in the cash book. Petty cash book definition of petty cash book by the. A petty cash voucher is usually a small form that is used to document a disbursement payment from a petty cash fund. In large business concerns, the petty cash book is maintained in columnar or analytical form, with a separate column for each usual item of expense and a column for total. Recording of transaction in cash book and journal with. Uses of petty cash book its a cash book used to enter daily petty expenses. Petty cash is money that is kept in the office of a company, for making small payments. Following are my videos url pls click on my video and share my videos to your friends.
Word meaning word in my language account balance bank charges cash book cashier columns debit side. The main advantages of petty cash book publish your article. The expression is first found in print in the english writer roger norths the gentleman accomptant accountant, 1715. Read this article to learn about the meaning and preparation of analytical and imprest system of petty cash book. Relatively small amount of cash kept at hand for making. Cash book the cash book is a ledger in the sense that it is designed in the form of a cash account and records cash receipts on the debit side and cash payments on the credit side. Simple petty cash book a simple petty cash book is one in which there is only one amount column on its both sides with common date and particular column. Petty cash book is maintained by the petty cashier. When an individual takes money out of the petty cash fund, he notes it in the petty cash ledger. Cash book records all receipts of and payments in cash. Many expenses of small nature are recorded in petty cash book. Petty cash book definition the petty cash book is defined as relatively small amount of cash kept at hand for making quick payments for miscellaneous small expenses in the business concern. There might be a petty cash drawer or box in each department for. Johnny cash birthday celebration tickets, sun, feb 23, 2020 at 12.
Meaning of petty cash book, its importance and advantages. Mr criddle told the court that one of thompsons responsibilities as senior business support officer was dealing with the petty cash. Petty cash definition of petty cash by merriamwebster. Petty cash book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc these are expenses which are incurred day after day. Petty cash was a small amount of cash that was kept aside for trifling purchases, too small to require the effort of the making out and cashing of a cheque.
Petty cash is often used to pay for postage, small office supplies, and other small purchases. Petty cash is money that is kept in the office of a company, for making small payments in cash when necessary. The simplest way to do this is to write a check to petty cash using. There are two primary types of entries in the petty cash b. Heres a list of opposite words from our thesaurus that you can use instead.
Meaning, pronunciation, translations and examples log in dictionary. For example, a mom and pop hardware store may keep petty cash to make change if a. A small amount of funds used instead of writting a check. The debit column is used for entering the balance of cash in the hand of petty cashier at the beginning of the period and the amount received from the head cashier. A petty cash transaction is one in which an employee or business owner takes money out of the petty cash fund for the purpose of buying something for the business. Petty cash book vocabulary file 1 this activity may be done in language support class or in the mainstream subject classroom. Joining forces with jon scott beloved friend and promotion partner of tom petty petty cash will host live performances from 3. Cash book contains all cash receipts and payments, including bank deposits and withdrawals.
Petty cash definition, a cash fund for paying small charges, as for minor office supplies or deliveries. After having her expense claims overruled, she took the money from petty cash. Petty cash meaning in the cambridge english dictionary. Petty cash is a small amount of currency and coins that a company has available to make very small payments instead of requesting and processing a company check. Cash that a company keeps available for small transactions with customers. The petty cash book is ruled in the form of the single column cash book with an amount column and addition oat columns for the more usual classes of expenditure. Petty cash book it is another cash book which is maintained, generally, in large business concerns to reduce the burden of main cash book, in which numerous transactions involving petty small amounts are recorded. However, failing to hold employees accountable for petty cash may encourage theft or inappropriate use of company resources.
The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it. The most common way of accounting for petty cash expenditures is to use the imprest system. It should be used in conjunction with procedural information, resources, and forms, which outline the application of this policy and may be found on the petty cash administration section. Meaning of petty cash book a petty cash book is one in which all petty or small payments made through petty cash fund are recorded systematically. This type of petty cash book is known as analytical petty cash book. A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure. In large business concerns, the petty cash book is maintained in columnar or analytical form, with a separate column for each usual item of expense and a. Petty cashier meaning in the cambridge english dictionary. Shop with post office shop and get great deals on range of cash books, petty cash pads, receipt books and voucher pads in stock and available with fast delivery. Read this article to learn about the recording of transactions in cash book and journal. This guide memo outlines policy on establishing and managing a petty cash fund. Petty cash book can be maintained either in a simple or in analytical way. A schoolboy, bid to accompt for his petty cash, will naturally. As the petty cashier cannot draw as and when he likes, it prevents unnecessary accumulation of cash in his hand thus the chances of defalcation of cash are minimised.
Thus, the book is part of a manual recordkeeping system. Information and translations of petty cash in the most comprehensive dictionary definitions resource on the web. As the petty cashier has to account for his expenses, before he can draw further sums, the petty cash book remains up to date. The additional analysis columns are used to analyze expenditures as they arise. Companies normally use checks to pay their obligations because checks provide a record of each payment, but they also maintain a petty cash fund to pay for small, miscellaneous expenditures. The petty cash book is a formal summarization of petty cash expenditures, sorted by date. Petty cash is a small amount of discretionary funds in the form of cash used for expenditures where it is not sensible to make any disbursement by cheque. Definition of petty cash petty cash or a petty cash fund is a small amount of money available for paying small expenses without writing a check. It is often used to reimburse employees for relatively low cost purchases, such as a birthday cake for an employee or breakfast treats for the morning staff meeting.
Petty cash or the petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check. Youll also want to purchase a lock box for the cash and receipts. Petty cash article about petty cash by the free dictionary. Range of cash books, petty cash pads, receipt books and.
The petty cash voucher should provide space for the. Petty cash definition and meaning collins english dictionary. Each entry in the petty cash book should include the date, the amount, and what was purchased with the petty cash. Heres a list of similar words from our thesaurus that you can use instead. Petty cash definition is cash kept on hand for payment of minor items. Petty cash vouchers are also referred to as petty cash receipts and can be purchased from office supply stores. For this purpose, a petty cashier is appointed by the chief cashier. 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. A petty cash fund is a modest amount of money kept to provide company cash for small incidental. Definition of petty cash petty cash refers to a small amount of currency and coins that a company uses to pay small amounts without writing a check. It is another cash book which is maintained, generally, in large business concerns to reduce the burden of main cash book, in which numerous transactions involving petty small amounts are recorded. Petty cash book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc.
Here are some advantages and disadvantages to using petty cash as an expense management solution. Most businesses allow their employees access to a petty cash fund to make small purchases that would be a hassle to put through company accounts individually. Petty cash definition of petty cash by the free dictionary. Petty cash book format example definition explanation. If you let your workers dip in and out of your petty cash reserves, its wise to. These are expenses which are incurred day after day. Petty cash is an easy to understand and familiar method of paying for company expenses. He put receipts into the petty cash so that it would appear that the money was being used for proper purposes, but, in fact, it was being stolen by him. Petty cash taqueria will host a live performance throughout the day on sunday, february 23 commemorating our idol, johnny cash. It is another cash book which is maintained, generally, in large business. Accounting capital is here to serve students with accounting and finance concepts through examples. A petty cash book is one in which all petty or small payments made through petty cash fund are recorded systematically. To set up and maintain a petty cash fund, you must fund it with monies from your business. Petty cash can be used for a variety of office expenses, including birthday cakes and taxi.
Is there a better way to solve the small expenditure dilemma. Require that employees maintain a running petty cash log for every transaction, including receipts. Petty cash is a small amount of cash on hand used for paying expenses too small to merit writing a check. Petty cash is a small amount of discretionary funds in the form of cash used for expenditures where it is not sensible to make any disbursement by cheque, because of the inconvenience and costs of writing, signing, and then cashing the cheque.
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