C02 – OFFICE FINANCE HANDLING

What is definition of petty cash that you know?

• The term ‘petty cash’ derives directly from the word ‘petty’ meaning ‘minor’; ‘Big’; ‘of secondary importance

• A separate column is allotted for each type of expenditure

• 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

• Cash received by the petty cashier is recorded on debit side

What is the types of petty cash?

• Petty cash book

• Book

• Cash book

• Cash ahnd

Why we must keep petty cash in you office?

• Office you work in has run out of coffee

• These types of transactions require more time and paperwork to complete

• Keeping petty cash on hand for small purchases

• A petty cash fund can be used for office supplies, cards for customers, flowers, paying for a catered lunch for employees, or reimbursing employees for expenses

Cash received by the petty cashier is recorded on debit side and all payments for petty expenses are recorded on credit side in one column

• True

• False

What is the advantage of analytical petty cash book?

• Most advantageous method of recording petty cash payments

• Separate column for each petty expense is provided on credit side.

• Cash received by the petty cashier is recorded on debit side and all payments for petty cash.

• The fund may need to be lowered if there is always a significant amount of unused cash sitting in the fund at any given time

_____________is a small amount of cash on hand used for paying expenses too small to merit writing a check. A petty cash fund can be used for office supplies, cards for customers, flowers, paying for a catered lunch for employees, or reimbursing employees for expenses

• Petty cash cash box

• Petty cash current asset

• Petty cash fund

• Petty cash purchase

A Petty Cash Fund provides convenience for small transactions for situations when using a bank card or other payment method is unreasonable

• True

• False

Receipts from purchases must be retained with the fund to support the total amount of the _________ and the replenishment of the fund

Petty cash is a not current asset

• True

• False

What is the petty analytical petty cash book?

• Keeping a small amount of money on hand for small purchases

• Separate column for each petty expense is provided on credit side

• Addition to coffee, are postage, office supplies, and breakfast or lunch for a meeting

• Once a purchase is made, the staff member who used the petty cash documents how much was actually spent on the slip and attaches the receipt. Any leftover change is also put back into the petty cash fund