Question: What Are The Two Types Of Petty Cash Book?

What is the difference between imprest and petty cash?

An imprest system of petty cash means that the general ledger account Petty Cash will remain dormant at a constant amount.

In other words, the general ledger account Petty Cash is not involved in the replenishment.

(Replenishment means getting the total of the currency and coins back to the imprest amount.).

What types of expenses are used with petty cash?

What are some typical petty cash expenses?Office supplies.Coffee and snacks.Postage.Fuel and parking for work trips.Reimbursements to employees for small expenses.Any other unpredictable expenses that are too small to write a check for.

What are the advantages of petty cash?

Advantages to Using Petty Cash It is an accessible, convenient way to pay for small purchases. When a business doesn’t provide access to company credit cards, or employees would rather not wait to be reimbursed for purchases, using petty cash is a simple alternative.

What is petty cash float?

The float is the maximum amount that can be held in petty cash at any time. The amount disbursed from the petty cash should be reimbursed when the fund falls to the level at which it must be replenished.

What is imprest money?

An imprest account is used for handling minor disbursements whereby a fixed amount of money is set aside for this purpose. … The total of petty cash on hand plus the amount of signed receipts or petty cash vouchers at any one time must equal the total amount authorized for the imprest account.

What is imprest cash book?

The imprest system is a form of financial accounting system. The most common imprest system is the petty cash system. The base characteristic of an imprest system is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.

How many types of petty cash book are there?

two typesPetty cash book is of two types: Columnar petty cash book, and. Imprest petty cash book.

What are the features of petty cash book?

The petty cash book is a formal summarization of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Thus, the book is part of a manual record-keeping system.

What is another name for petty cash?

In this page you can discover 7 synonyms, antonyms, idiomatic expressions, and related words for petty-cash, like: kitty, made money, pin-money, pocket-money, pool, fund and spending-money.

What are the two types of imprest?

Imprest is of two classes, namely: Standing Imprest, held throughout the financial year and replenished as and when necessary by the presentation of receipt and petty cash vouchers; and.

What is petty cash book?

The petty cash book is a recordation of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. … This format is an excellent way to monitor the current amount of petty cash remaining on hand.

Is petty cash an asset?

Yes, petty cash is a current asset. A current asset is any asset that will provide an economic benefit within one year. Petty cash refers to spending cash that a company has readily available.

Where do we record petty cash?

Petty cash is stored in a petty cash drawer or box near where it is most needed. There may be several petty cash locations in a larger business, probably one per building or even one per department. A separate accounting system is used to track petty cash transactions.

What is petty cash voucher?

A petty cash voucher is usually a small form that is used to document a disbursement (payment) from a petty cash fund. Petty cash vouchers are also referred to as petty cash receipts and can be purchased from office supply stores. … Reason for the disbursement. General ledger account to be charged.

How does imprest petty cash work?

The Imprest System A petty cash fund is established, with a set amount of cash. This is recorded in the company’s ledger. Any expenses paid through the petty cash fund must be documented with receipts. The fund is replenished regularly with disbursement receipts to maintain a fixed balance.

How many columns are there in petty cash book?

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.

What type of account is petty cash?

Petty cash funds To permit these cash disbursements and still maintain adequate control over cash, companies frequently establish a petty cash fund of a round figure such as $100 or $500. The petty cash account is a current asset and will have a normal debit balance (debit to increase and credit to decrease).

How many types of imprest are there?

361 types of imprest there are two types of imprest.

What is petty cash example?

The small amount of cash that a company considers petty will vary, with many companies keeping between $50 and $200 as a petty cash fund. Examples of transactions that a petty cash fund is used for include: Office supplies. Cards for customers.

How is petty cash book prepared?

To avoid a large number of small payments, a separate cash book is made which is maintained by a petty cashier, who is paid a small amount at the beginning of the period called impress amount. When petty cashier spend the money, he is reimbursed the same amount to make further small expenditure.

Who keeps a petty cash book?

A petty cash book is created to facilitate small payments in a business or organization. It caters for items such as postage and stamps, bus fare and stationery. It is meant to meet the day-to-day expenses and is entrusted in the hands of a petty cashier.