Accounting for petty cash

Question 1

What is the petty cash book?

Answer 1

-The book of prime entry used to record the petty cash vouchers and any money paid into the petty cash box.

Question 2

What is a petty cash float?

Answer 2

-The amount of cash held in the petty cash box at any one time.

Question 3

What is a petty cash voucher?

Answer 3

-The document that must be completed and authorised before any cash be paid out to an employee from the petty cash box.

Question 4

What is the imprest system?

Answer 4

-A petty cash system whereby the petty cash box is always topped up to the same amount at the end of each week or month.

Question 5

What is the imprest amount?

Answer 5

-The amount to which the petty cash float is topped up at the end of a period of time.