As the cash book lists

bank payments &

receipts, a petty cash
book is needed to
record actual cash

Voucher is a form
which shows what a
payment is for .

Imprest systems is
a system by which
a refund is made
of the total paid

A worked example of a petty

cash book:
Step 1
Step 2
the
Step 3
Step 4
total

Enter date and details of each payment .Put in the

total column.
For step 1 also put the amount in the column for
type of expense.
At the end of each period,add up the totals column
Now add up each of the expense columns. The

of Step 3 should equal the total of all the expense

column
Step 5
Then balance off the petty cash book ,carrying
down the petty cash in hand balance to the next period

or example:

Write up a petty cash book,with analysis columns for office expenses,motor expenses ,cleaning expenses and casual labour.The
cash float brought down is $600 and the amount spent is reimbursed on 28 Feb.Show the balance carried down to 1 March .
Year 8
$
Feb 1 Letterheadings
32
2 F.Lee-casual labour
15
2 Unique Motors- motor repairs
33
4 Petrol
27
5 Paper clips
10
8 Envelopes
12
9 Cleaning materials
15
11 C.Hop- casual labour
27
13 Mr.Ng-cleaner
21
16 Typewriter ribbons
24
18 Motor taxation
60
21 K.Kwan - casual labour
20
Also show how the items for motor expenses and office expenses would appear in the general ledger.

Petty Cash Book

Receipts Date
$ Year 8
600 Feb-01
1
2
2
4
5
8
9
11
13
16
18
21

Details

Voucher
No

Total
$

Bank
Letterheading
F.Lee Causel Labour
Unipue Motors
Petorl
Paper clips
Envelopes
C leaning m aterials
C.Hop-Causel Labour
Mr.ng-cleaner
Typerwriter ribbons
Motor taxation
K.kwan-Causel Labour

28 Bal c/d
600
296 M ar-01 Bal b/d
Bank
304

1
2
3
4
5
6
7
8
9
10
11
12
296
304
600

32
15
33
27
10
12
15
27
21
24
60
20

Office
Exp
$

Motor
exp
$

Cleaning Causel
Exp's
Labour
$
$

32
15
33
27
10
12
15
27
21
24
60
78

120

36

20
62

General Ledger
Motor Expenses
Year 8
Feb 28

$
Petty cash

120

Office
expenses
Year 8
Feb 28

$
Petty cash

78

Now you know

how to prepare
a petty cash
book ???

Exercise
Year 3
May 1

3
5
8
12
17
20
23
25
27

The cashier hands a cheque for$100 to the petty

cashier to enable him to obtain cash for the
starting float of petty cash
$
Stationery
Voucher No. 1
5.6
Postage
Voucher No. 2
8.7
Cleaning expenses
Voucher No. 3
15.2
Payment of amount to K Sutton in the
purchases ledger
Voucher No. 4
27.4
Postage
Voucher No. 5
6.3
S-Small- travel exp.
Voucher No. 6
4.5
Stationery
Voucher No. 7
3.2
Cleaning expenses
Voucher No. 8
12.4
Telephone phone bill
Voucher No.9
1.2

29 Postage

Voucher No. 10

6.3

31 The cashier reimburses the petty cashier the amount paid out to date

Receipts Date
$
100

1.2

Year 3
M ay-01
3
5
8
12
17
20
23
25
27
29

Details

Bank
Stationery
Postage
Cleaning
K Sutton
Postage
S Smalltravel
Stationery
Cleaning
Telepone
Postage

31 Bal c/d
101.2
11.6
88.4

Bal b/d
Bank

Petty Cash Book

Voucher Total Postage Stationery
No
$
$
$
1
2
3
4
5
6
7
8
10

5.6
8.7
15.2
27.4
6.3
4.5
3.2
12.4

Travel Cleaning Ledger Ledger

Exp's
Folio Accounts
$
$
$

5.6
8.7
15.2
PL1

27.4

6.3
4.5
3.2

6.3
6.6
89.6
21.3
8.8
11.6 GL 1 GL 2
101.2

12.4

4.5
GL 3

27.6
GL 4

27.4

General
Ledger

Postage

Year 3
$
May 31 Petty cash 21.3
Stationery
Year 3
$
May 31 petty cash 8.8
Travel Exp.
Year 3
$
May 31 Petty Cash 4.5
Cleaning
Year 3
$
May 31 Petty Cash 27.6

General
Ledger

Purchases
Ledger

Bank
Year 3
May 1 Petty Cash
Jun 1 Petty Cash

K Sutton

Year 3
$
May 31 Petty Cash 27.4

$
100
88.6

Revision Notes
The petty cash book saves 1) the main cash book
2)the ledger accounts from containing a lot of
trivial details
The use of the petty cash book enables the chief
cashier to delegate this type of work to a more
junior member of staff
Under the imprest system,at the end of a
period ,the cashier reimburses the petty cashier
the amount spent in the that period ,so as to
make up the cash float.