The Petty Cash Book

The Petty Cash Book

What does Petty mean?

A petty cash voucher is a small slip of paper used to record expenses paid from a petty cash fund.

The petty cashier is the person responsible for managing this small amount of money and documenting its usage.

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The Petty Cash Book is used to record small cash payments that are too repetitive to be entered in the Cash Book

Multiple Choice

1. What is a petty cash book?

• a) A novel about small cash transactions

• b) A record of small expenses paid from a petty cash fund

• c) A guide on managing large financial investments

• d) A ledger for tracking personal savings

Multiple Choice

1. Who is the petty cashier?

• a) The head accountant of a company

• b) A manager responsible for large financial transactions

• c) The person in charge of managing a small amount of cash for minor expenses

• d) A bank teller specializing in handling petty cash withdrawals

Multiple Choice

What is a petty cash voucher?

• a) A receipt for a major purchase made by a company

• b) A document recording expenses paid from a petty cash fund

• c) A coupon used to redeem discounts on small items

• d) A ticket for entry to a cash prize lottery

The Imprest system

The imprest system is a method used by businesses to manage a small, fixed amount of cash, called a petty cash fund, for day-to-day expenses like office supplies or refreshments. A set amount of money is initially placed in the fund, and whenever it gets low, it's replenished to its original amount. This system ensures there's always enough cash on hand for minor purchases while maintaining clear records of where the money goes.

Multiple Choice

How does the imprest system work?

• a) By allowing unlimited withdrawals from the petty cash fund

• b) By replenishing the petty cash fund to a fixed amount after each use

• c) By giving employees access to a large sum of cash for personal use

• d) By requiring strict documentation for every petty cash transaction

Multiple Choice

1. What is the main purpose of the imprest system?

• a) To encourage employees to save money

• b) To maintain a constant balance of petty cash

• c) To increase spending on company expenses

• d) To prevent employees from accessing petty cash