The most common way of accounting for petty cash expenditures is to use the imprest system. These small expenditures are usually paid using coins and currency notes rather than checks. A petty cashier makes a detailed analysis of petty payments and records under suitable heads, i. Before the rise in the use of credit cards and charge cards, nearly all companies used petty cash accounts to allow employees responsible for purchasing small supplies to do so with minimal hassle. Petty cash is a small amount of currency and coins that a company has available to make very small payments instead of requesting and processing a company check. Meaning of petty cash book a petty cash book is one in which all petty or small payments made through petty cash fund are recorded systematically.
Dec 23, 2015 im sure garrick saito would explain it well. Petty cash is a small amount of discretionary funds in the form of cash used for expenditures where it is not sensible to make any disbursement by cheque, because of the inconvenience and costs of writing, signing, and then cashing the cheque. To make change for customers or patients to reimburse employees for items they have bought for your business. It is a good plan to deposit all cash received and to pay all bills by check, except such small items as are paid from petty cash. Sep 19, 2019 petty cash or the petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check. Petty cash definition, a cash fund for paying small charges, as for minor office. May 28, 2019 require that employees maintain a running petty cash log for every transaction, including receipts. Mr criddle told the court that one of thompsons responsibilities as senior business support officer was dealing with the petty cash. For this purpose, a petty cashier is appointed by the chief cashier. What is the difference between cash book and petty cash book.
In most cases, the petty cash book is an actual ledger. A fixed balance is maintained in the account, and it is replenished routinely. 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 petty cash account is used to make small purchases. Petty cashier is a person, who maintains the petty cash book. Petty cash, also known as cash on hand, refers to small amounts of cash kept on hand in a business. Petty cash book definition the petty cash book is defined as relatively small amount of cash kept at hand for making quick payments for miscellaneous small expenses in the business concern. These are expenses which are incurred day after day. Petty cash definition is cash kept on hand for payment of minor items. Petty cash definition, a cash fund for paying small charges, as for minor office supplies or deliveries.
A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure. Meaning of petty cash book, its importance and advantages. Petty cash book definition, types, format, examples imprest and. Petty apartheid synonyms, petty apartheid antonyms. So, the book, wherein day to day petty expenses for a particular period of a business concern, are recorded in chronological order of dates is called petty cash book. Find all the synonyms and alternative words for petty cash at synonyms. He put receipts into the petty cash so that it would appear that the money was being used for proper purposes, but, in fact, it was being stolen by him.
Each entry in the petty cash book should include the date, the amount, and what was purchased with the petty cash. Find all the synonyms and alternative words for petty cash at, the largest free online thesaurus, antonyms, definitions and translations resource on the web. How the imprest system of petty cash book works your business. However, purchases made using cash are sometimes easily forgotten, difficult to track and ultimately challenging for accounting. Heres a list of similar words from our thesaurus that you can use instead. Is there a better way to solve the small expenditure dilemma.
Petty cash dictionary definition petty cash defined. It is another cash book which is maintained, generally, in large business. This video shows the creation and replenishment of petty cash. Petty cash is an account head under which money is kept in cash in a company. The petty cash book is ruled in the form of the single column cash book with an amount column and addition oat columns for the more usual classes of expenditure. Feb 08, 2017 petty cash definition including break down of areas in the definition. This guide memo outlines policy on establishing and managing a petty cash fund. Difference betwen petty cash and three column cash book.
Mar, 2018 the petty cash book is a formal summarization of petty cash expenditures, sorted by date. Petty cash book is maintained to record small expenses such as postage, stationery, telegram. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Petty cash is typically a reserve of money kept for small day to day purchases. Columnar petty cash book and its preparation process. Meaning, pronunciation, translations and examples log in dictionary. Analyzing the definition of key term often provides more insight about concepts.
Petty cash controls to be tighter tingle and pearson had a grudge against mr petty. Petty casha term used to signify small expenditures in actual cash. Petty cash book can be maintained either in a simple or in analytical way. Review your petty cash register before you replenish the petty cash fund. Definition of petty cash petty cash or a petty cash fund is a small amount of money available for paying small expenses without writing a check. Petty cash is also the title of the general ledger current asset account that reports the amount of the companys petty cash.
The petty cash book is defined as relatively small amount of cash kept at hand for making quick payments for miscellaneous small expenses in the business. It should be used in conjunction with procedural information, resources, and forms, which outline the application of this policy and may be found on the petty cash administration section of the gateway to financial activities website fingate. After having her expense claims overruled, she took the money from petty cash. Heres a list of opposite words from our thesaurus that you can use instead. Petty cash meaning in the cambridge english dictionary. Petty cash book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc.
A petty cash book gives management a record of all the little. Petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel, newspapers, cleaning, pins, and causal labor etc. Petty cash is money that is kept in the office of a company, for making small payments in cash when necessary. At times, every business finds it convenient to have small amounts of cash available for immediate payment of items such as delivery charges, postage stamps, taxi fares, supper money for employees working overtime, and other small items. Petty cash article about petty cash by the free dictionary. This is a standard analysed cash book question for junior cert. Petty cash book definition of petty cash book by the free. It is another cash book which is maintained, generally, in large business concerns to reduce the burden of main cash book, in which numerous transactions involving petty small amounts are recorded. Petty cash definition in the cambridge english dictionary.
Petty cash definition of petty cash by the free dictionary. When an analytical petty cash book is maintained for recording the petty expenses, it will be practically more convenient to consider the petty cash as a separate account and take cheques issued for the petty cash imprest as a debit to petty cash account and all petty expenses paid as credits in petty cash account. Thus, the book is part of a manual recordkeeping system. Petty cash is money that is kept in the office of a company, for making small payments.
Top synonyms for petty cash other words for petty cash are loose change, pocket money and small change. The additional analysis columns are used to analyze expenditures as they arise. Petty cash book definition of petty cash book by the. What are the advantages of the petty cash book answers. Uses of petty cash book its a cash book used to enter daily petty expenses like cost of stationery, postage and xerox copy and so on. Petty cash or a petty cash fund is a small amount of money available for paying small expenses without writing a check. Cash that a company keeps available for small transactions with customers. What is the difference between petty cash book and cash book. Petty cash definition and meaning collins english dictionary.
When discussing plants, whats the best word to describe the rich, dark stuff that they. The credit side consists of several analysis columns. What stream should i take after 10th to be a journalist. Describes a noun or pronounfor example, a tall girl, an interesting book, a big house. Recording of transaction in cash book and journal with specimen. Petty cash book is maintained by the petty cashier. Petty cash definition of petty cash by merriamwebster. The petty cash book is a formal summarization of petty cash expenditures, sorted by date.
Companies normally use checks to pay their obligations because checks provide a record of each payment, but they also maintain a petty cash fund to pay for. Petty cash financial accounting simple book production. Petty cash is the small cash reserves that businesses keep on the. Petty cash transactions documentation thesaurus accounts. There might be a petty cash drawer or box in each department for. Sep 30, 2019 petty cash has long been a quick method of providing funds for employee purchases. There are two primary types of entries in the petty cash b. Petty definition, of little or no importance or consequence. In this book, separate columns are provided for usual head of expenditure.
65 110 259 157 948 571 554 945 1034 451 1263 754 1115 210 457 868 839 488 748 1583 1301 1585 1076 1310 1143 989 1157 91 437 689 1308 471 23 335 229 493 189 534