Summary Grade 10 Accounting summaries and notes

Petty Cash
What is Petty Cash?
Money used by business when purchasing items that are not very expensive, such as
stationery, tea, stamps etc… Petty cash is a current asset because it represents
money. Petty cash is administrated by a petty cashier.



The Petty Cash procedure


1. The petty cashier will be given
an amount of money to put in
2. If an amount is required from petty
the petty cash box. This amount
cash, the person requesting the money
will be determined by the
will fill & sign a petty cash voucher on
bookkeeper. The bookkeeper
which they will state what the money is
will cash a business cheque for
being used for
this amount & will record this
payment in the CPJ




3. The petty cashier will hand over the
amount requested and use the petty 4. At the end of the month, the
cash voucher & receipt as source petty cashier will add up all
documents for recording the petty cash payments and
transactions in the PCJ request a cheque from the
bookkeeper for this amount.
Amount at the end of the
month will therefore be the
same as in the beginning of the
month




 This system is called the Imprest system
 Amount at the end of the month = Imprest amount