CHAPTER 10 Flashcards
Maintaining Petty Cash Records
What is petty cash used for?
Make small payments with notes and coins
Items paid out of petty cash
Small items of expense
Who gets paid out of petty cash?
- To employee (reimburse them for business expense they spend using their own pocket money)
- Directly to supplier (milkman/window cleaner)
Is there a sale tax for casual labour, etc : office cleaner
YES
Petty cashier
- 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
Petty cash box
- Must be kept secure
- Restrict access
There is a maximum limit of petty cash payment.
Yes/No ?
YES
Request for petty cash payments should be supported by ??
A receipt
Sales tax can be claimed back from authorities
Imprest system
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
Petty cash voucher
Record of payment from petty cash attached with receipts (stapled)
Details on petty cash voucher
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
IOU
Someone borrows cash from petty cash box
when borrowed money is returned, IOU is thrown away
Entries in petty cash general ledger listed first in which of the following orders?
a) Voucher number order
b) Date order
Vouchers must be sorted intro DATE ORDER first before given sequential number
Details in sales tax receipt
1) Total payment
2) Sales tax amount paid
3) Supplier name, address & SALES TAX REGISTRATION NUMBER
4) Date of payment
What form needed to top up petty cash ?
Cheque requisition form
