The petty cash book

Question 1

What is the imprest amount?

Answer 1

-what the petty cash is always topped up to

Question 2

What are the key steps to a petty cash system?

Answer 2

1. purchase made
2. authorised writes out a voucher and attaches receipts
3. both sign voucher
4. get money back
5. topped back up to imprest amount
6. remove vouchers
7. write up petty cash book

Question 3

What should all petty cash vouchers have?

Answer 3

1. sequential number
2. date
3. description
4. amount
5. 2 signatures

Question 4

What are the double entries for the payments side of petty cash?

Answer 4

Dr VAT
Dr Postage etc.
Cr petty cash

Question 5

What could it mean if too much money is in the tin?

Answer 5

-not enough money given out
-money hasn’t yet been paid out
-more than the imprest amount was present
-calculation errors when writing up book

Question 6

What could it mean if too little money is in the tin?

Answer 6

-money has been removed
-too much cash given away
-voucher may be missing
-top up hasn’t been put in but has been recorded

Question 7

What is a cheque requisition form?

Answer 7

-used to top up the tin

Question 8

What are the double entries for the receipts side of the petty cash book?

Answer 8

Dr petty cash
Cr bank

Question 9

What is a non-imprest system?

Answer 9

-top up petty tin with a set amount at set periods

Question 10

What are 2 issues with non-imprest system?

Answer 10

1. could run out
2. cash may accumulate