*Girl With The Brown Hair*
|
Businesses often need small amounts of cash known as petty cash for expenditures where it is not practical to make the disbursement by check.
The most common way of accounting for these expenditures is to use the imprest system. The initial fund would be created by issuing a check for the desired amount. Usually $100 would be sufficient for most small business needs. The entry for this initial fund would be to debit Petty Cash and credit cash.
As expenditures are made the custodian of the fund will reimburse employees and secure a petty cash voucher in return. At any given time the total of cash on hand plus reimbursed vouchers must equal the original fund.
When the fund gets low the custodian submits the vouchers for reimbursement. Assuming the vouchers add up to $80 and that the majority of expenditures were for office supplies, an $80 check is issued and an $80 debit towards office expenses is marked. Once the check is cashed, the custodian has cash at the original amount.
Oversight of petty cash is important because of the potential for abuse. Examples of petty cash controls include a limit (such as 10% of the total fund) on disbursements and monthly audits by someone other than the custodian. Use of petty cash is sufficiently widespread that vouchers for use in reimbursement are available at any office supply store. |
|
jack430
|
Small amount of cash for immediate purchases. |
|
DREAK
 |
a minimal amount set aside in the office for last minute expenses like toilet paper, coffee or pizzas at lunch. Paid for by an employee and refunded by the company within a day or so. |
|
savedbymercy
 |
It's the cash that the corporate held beside the ones in bank. Usually, the cash money which is held by the finance staff or the treasurer. |
|
a_guy♥;
|
some expenses are very small in our day life or business life, like pens, papers, eraser, pencils, etc.
the spare money for these kind of expenses, is called petty cash. |
|
Sparkling pearl
|
It means an amount of money available to use/spend in the company, usually the amount is small and purposed for daily unexpected small amount cost needs of the company. |
|
brook
|
Its the amount of money that is spent on small things needed in a company that wasn't in the budget or paying small debts like newspaper bills or transport allowance for a new empolyee. |
|
Schmito
|
It is the actual cash that is kept at the business for making change. |
|
Anne M
|
Petty cash is cash that you have just in case of an emergency...Lets say you have an employee that usually takes the bus to work and it is raining so she can not make it unless she gets a ride....So you take the money out of the petty cash and pay for a cab for her to get to work. Kinda like having extra cash for a gallon of milk at home. |
|
mrsingu
|
real money available for unseen needs. usually small amount for little things that come up during the day/week. |
|
natalie
 |
Cash kept on hand, in the drawer, in case someone comes in & pays with cash, then you have some change to give them back. |
|
| |
|
Homepage 
Financial
Forum 
Business & Finance 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
