CHAPTER 10 Flashcards

Maintaining Petty Cash Records

1
Q

What is petty cash used for?

A

Make small payments with notes and coins

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2
Q

Items paid out of petty cash

A

Small items of expense

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3
Q

Who gets paid out of petty cash?

A
  • To employee (reimburse them for business expense they spend using their own pocket money)
  • Directly to supplier (milkman/window cleaner)
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4
Q

Is there a sale tax for casual labour, etc : office cleaner

A

YES

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5
Q

Petty cashier

A
  • Make sure cash is held in a safe place
  • Make actual payments of cash
  • Ensure payments are properly authorised
  • Usually petty cashier will authorise payment unless exceeds credit limit BUT

kena tengok soalan jugak...

  • petty cashier will not authorise payment & sign voucher
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6
Q

Petty cash box

A
  • Must be kept secure
  • Restrict access
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7
Q

There is a maximum limit of petty cash payment.

Yes/No ?

A

YES

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8
Q

Request for petty cash payments should be supported by ??

A

A receipt

Sales tax can be claimed back from authorities

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9
Q

Imprest system

A

A maximum amount of money in petty cash

Certain amount of cash is held in the box, at regular intervals/cash is low, vouchers are added up and the total is the top up amount

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10
Q

Petty cash voucher

A

Record of payment from petty cash attached with receipts (stapled)

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11
Q

Details on petty cash voucher

A

1) Receipts stapled
2) Purpose for payment
3) Voucher number
4) Date
5) Name and signature of recipients/ whom cash was paid
6) Name and signature of the person authorising the payments

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12
Q

IOU

A

Someone borrows cash from petty cash box

when borrowed money is returned, IOU is thrown away

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13
Q

Entries in petty cash general ledger listed first in which of the following orders?

a) Voucher number order
b) Date order

A

Vouchers must be sorted intro DATE ORDER first before given sequential number

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14
Q

Details in sales tax receipt

A

1) Total payment
2) Sales tax amount paid
3) Supplier name, address & SALES TAX REGISTRATION NUMBER
4) Date of payment

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15
Q

What form needed to top up petty cash ?

A

Cheque requisition form

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16
Q

Non-imprest system

A

No fixed imprest amount

17
Q

When will we take out the voucher out of the box?

A

When it has been posted to accounting system

18
Q

Can we throw vouchers taken out of petty cash box?

A

NOO!! - Voucher must be kept at least for 7 years

19
Q

How to hold archive records of voucher ?

A

1) Vouchers with receipts attached kept together in number sequence
2) Kept in box files/containers