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When an employee needs to buy something quick they can use petty cash.
For example, if an employee made a quick trip to get some donuts for the people in the office they would just take from the petty cash on hand.
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∙ 15y ago
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How to maintain petty cash book?
Maintaining a petty cash book can be simple as long as a person makes sure to keep up on transactions regularly. Most petty cash books are maintained by listing receipts and their purchase purpose along with the date and a brief explanation.
What does the three columnar side of cash book represents?
Three Columnar cash book Represent "Discount " "Cash in Office" and "Banking" transcations in three colums on each side. Three Columnar cash book is used to keep the record of Cash in flow & out flow both in Office cash in hand, in business bank account and any Discount received or allowed in a single book/statment.
What is a petty cash book?
Definition and Explanation:In almost all businesses, it is found necessary to keep small sums of ready money with the cashier or petty cashier for the purpose of meeting small expenses such as postage, telegrams, stationary and office sundries etc. The sum of money so kept in hand generally termed as petty cash and book in which the petty cash expenditures are recorded is termed as petty cash book.In large business houses , the cashier has to handle every day a large number of receipts and payments and if in addition to this he is further saddled with petty cash payments, his position becomes embarrassing. Besides, it is most common to find with large commercial establishments that all receipts and payments are made through bank. Since expenses like postage, telegrams, traveling etc, cannot be made by means of cheques, the maintenance of a small cash balance to meet these petty payments becomes all the more necessary.A petty cash book is generally maintained on a columnar basis - a separate column being allotted for each type of expenditure. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it. The credit side consists of several analysis columns. Every payment made by the petty cashier is entered on this side twice - Firstly it is recorded in the total column and then to the appropriate column to which the expense is concerned. The total of the "total column" will naturally agree with the total of all subsidiary columns. The difference between the total of the debit items and that of the "total column" on the credit side at any time will represent the balance of the petty cash in hand and this should tally with the petty cashier's actual holding of cash.The posting from the petty cash book to the respective accounts in the ledger are made directly in total at the end of every month or any other fixed period.
When is petty cash fund always replenished?
Based on a company's policies, petty cash could be replenished periodically or when the balance drops below a certain level. For example, it might be company policy to replenish petty cash once a month or even once a month. More often, however, it will be company policy to keep the petty cash balance above a certain figure, say $100. Whenever the balance drops below $100, then it will be replenished.
Advantage and disadvantage of paying expenses using cash from the cash register?
Advantage: none. Disadvantage: stupid. Keep proper records. You can't do this if you treat the cash register as a petty cash source. Keep a petty cash resource and maintain proper records of that. Bank what's in the cash register. Disregard all the above if you're anxious to go broke and also attract serious questions from the tax inspectors. the person that wrote this need to get a life and write some real answers ya noonga
What is the purpose of petty cash book why some of the organization is always keep the petty cash as important tools for their daily expenses(internal)?
so you can keep cash
What is the purpose of petty cash book why some of organization is always keep the petty as important tools for their daily expenses bank internal?
so you can keep cash
What do you mean by petty cash book in small scale industry?
Petty is anglicized from the french 'petite' (small). Small businesses buy minor quantities of stationary, postage etc for cash rather than paying by check. To keep track of those fees there is a dedicated petty cash book. Each day the petty cash book is balanced before putting the petty cash and daily receipts in the safe.
How to maintain petty cash book?
Maintaining a petty cash book can be simple as long as a person makes sure to keep up on transactions regularly. Most petty cash books are maintained by listing receipts and their purchase purpose along with the date and a brief explanation.
What are the duties and responsibilities of a petty cashier?
In a business, petty cash is kept to buy small items that may be needed at any given time. The duties and responsibilities of a petty cashier is to keep track of this money, and to ensure that it is spent as it is intended, they must also keep accurate records and receipt.
What are the Various books of account of the local government?
depending on the accounting policies of your country, local governments in different countries may keep different books of accounts and their treatment of transactions may also vary. However, local governments will normally have the following books: a variety of ledgers, cashbooks, vote book and petty cashbook. The vote book serve as control to the funds ensuring that budget allocated to a given vote head is not exceeded. The cash book serves to record the receipts and payment of cash. The petty cash book records the petty cash held on hand used in the day to day operations of the local government. Note that local governments do not usually keep one cash book.
What does the three columnar side of cash book represents?
Three Columnar cash book Represent "Discount " "Cash in Office" and "Banking" transcations in three colums on each side. Three Columnar cash book is used to keep the record of Cash in flow & out flow both in Office cash in hand, in business bank account and any Discount received or allowed in a single book/statment.
What is a petty cash book?
Definition and Explanation:In almost all businesses, it is found necessary to keep small sums of ready money with the cashier or petty cashier for the purpose of meeting small expenses such as postage, telegrams, stationary and office sundries etc. The sum of money so kept in hand generally termed as petty cash and book in which the petty cash expenditures are recorded is termed as petty cash book.In large business houses , the cashier has to handle every day a large number of receipts and payments and if in addition to this he is further saddled with petty cash payments, his position becomes embarrassing. Besides, it is most common to find with large commercial establishments that all receipts and payments are made through bank. Since expenses like postage, telegrams, traveling etc, cannot be made by means of cheques, the maintenance of a small cash balance to meet these petty payments becomes all the more necessary.A petty cash book is generally maintained on a columnar basis - a separate column being allotted for each type of expenditure. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it. The credit side consists of several analysis columns. Every payment made by the petty cashier is entered on this side twice - Firstly it is recorded in the total column and then to the appropriate column to which the expense is concerned. The total of the "total column" will naturally agree with the total of all subsidiary columns. The difference between the total of the debit items and that of the "total column" on the credit side at any time will represent the balance of the petty cash in hand and this should tally with the petty cashier's actual holding of cash.The posting from the petty cash book to the respective accounts in the ledger are made directly in total at the end of every month or any other fixed period.
When is petty cash fund always replenished?
Based on a company's policies, petty cash could be replenished periodically or when the balance drops below a certain level. For example, it might be company policy to replenish petty cash once a month or even once a month. More often, however, it will be company policy to keep the petty cash balance above a certain figure, say $100. Whenever the balance drops below $100, then it will be replenished.
What are some common methods for the internal control of cash?
An allowance.Here are some additional controlsFor Cash receipts> Keeping Cash handling and Book Keeping separate> Daily deposit of cash receiptsFor Cash disbursements> Making all disbursements by cheque (other than petty cash)> Keeping the Cheque book under lock and key.> Sign checks only if adequate documentation is presented> Have only higher-level personnel sign checks (neverthe bookkeeper!)> Prepare bank reconciliations.> Keep petty cash in a safe place.> Execute Fidelity bonds on employees in positions of trust, such as book-keepers. (Fidelity bonds are insurance policy taken against the risk of dishonesty by employees.)
What is a petty cash?
Definition and Explanation:In almost all businesses, it is found necessary to keep small sums of ready money with the cashier or petty cashier for the purpose of meeting small expenses such as postage, telegrams, stationary and office sundries etc. The sum of money so kept in hand generally termed as petty cash and book in which the petty cash expenditures are recorded is termed as petty cash book.In large business houses , the cashier has to handle every day a large number of receipts and payments and if in addition to this he is further saddled with petty cash payments, his position becomes embarrassing. Besides, it is most common to find with large commercial establishments that all receipts and payments are made through bank. Since expenses like postage, telegrams, traveling etc, cannot be made by means of cheques, the maintenance of a small cash balance to meet these petty payments becomes all the more necessary.A petty cash book is generally maintained on a columnar basis - a separate column being allotted for each type of expenditure. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it. The credit side consists of several analysis columns. Every payment made by the petty cashier is entered on this side twice - Firstly it is recorded in the total column and then to the appropriate column to which the expense is concerned. The total of the "total column" will naturally agree with the total of all subsidiary columns. The difference between the total of the debit items and that of the "total column" on the credit side at any time will represent the balance of the petty cash in hand and this should tally with the petty cashier's actual holding of cash.The posting from the petty cash book to the respective accounts in the ledger are made directly in total at the end of every month or any other fixed period.
Advantage and disadvantage of paying expenses using cash from the cash register?
Advantage: none. Disadvantage: stupid. Keep proper records. You can't do this if you treat the cash register as a petty cash source. Keep a petty cash resource and maintain proper records of that. Bank what's in the cash register. Disregard all the above if you're anxious to go broke and also attract serious questions from the tax inspectors. the person that wrote this need to get a life and write some real answers ya noonga
