![]() Keep regular supervision on Petty Cash Funds.Do not handover excessive petty cash amounts to employees.Instruct your employees handling petty cash to record everything.Initially define the usage of petty cash.Allocate a reasonable amount of cash from your Main Cash for petty cash payments.Thus, in large businesses, both Cash Book and Petty Cash Book are very essential. Petty Cash Journal Entries While Recording Expenses: Petty Cash Journal Entries While Adding Cash: The head cashier enters this periodic total with a single entry as Petty Expenses in books of accounts. Each payment made is under a particular head and not posted into the ledger separately. Petty cash book has become a useful document to save time. In the end, the last row displays the Totals of both inward and outward entries. You can increase or decrease subheadings for expenses as per your requirement. See the image below to understand it better: The Debit side has the date and cash received from Chief Cashier, whereas the Credit side has all types of petty expenses like stationaries and printing, postage, loading, etc. The petty cash entry section consists of 2 sides debit and credit. Using conditional formatting the amount in cells turns red whenever there is a negative balance. If the totals of outward exceed against the totals of inward then the Petty cash on hand will be negative. The Formula applied is =SUM(B4: B20)-SUM(E4: E20) or we can also use =SUM(B21-E21).īoth formulas reflect the same calculations. It is derived by subtracting total expenses from the cash received from Chief Cashier in cell B21. The right-hand corner of the cell in blue display the amount of Petty Cash on Hand. The header section consists of Your Company/Business Name and template heading “Petty Cash on Hand”. The Petty Cash Book template has 2 sections which are mentioned below: Header Section, and Petty Cash Entry Section. Contents of Petty Cash Book Excel Template Let’s discuss in detail the contents of the template. In addition to this, you can also download other accounting-related templates like Cash Book, Account Receivable, Accounts Payable, and Profit & Loss Account. ![]() Important Note: To edit and customize the Google Sheet, save the file on your Google Drive by using the “Make a Copy” option from the File menu. We have created a simple and ready-to-use Petty Cash Book Template with predefined formulas that are useful for businesses of all sizes.Ĭlick here to Download All Accounting Excel Templates for ₹299. Upon the completion of the period, the petty cashier submits the report of petty expenses to the head cashier for review.Īfter reviewing the head cashier will reimburse the spent amount and the petty cash amount is again equal to the agreed fixed amount. The petty cashier spends the money under the given budget. It can be either a week or a month depending on the volume of transactions. Under the Petty Cash Imprest System, the head cashier provides a fixed feasible amount depending on previous spend history to the petty cashier for a given period. The head cashier reviews the expenses and provides new funds to run the day to day expenditure again Imprest Petty Cash Once the amount is spent, the record is presented to the head cashier for the review. The petty cashier is responsible to record the sundry expenses. In the ordinary system, a sum of cash is given to the petty cashier. There are 2 types of Petty Cash Systems: Ordinary System and Imprest System Ordinary or Simple Petty Cash Thus, to release his extra burden, handling of these small head expenses is given to assistant cashier, receptionist, or other reliable staff. In addition to this, if the chief cashier has to maintain the sundry expenses in his book, his work increases and becomes hectic. Payment and receipts of these amount to hundreds or thousands of dollars per day. ![]() In big companies, the head cashier maintains the company’s general cash book. This process is either weekly or monthly. When the petty balance is low or exhausted, the head cashier again allots the amount to the cashier. The Chief Cashier gives the Petty Cashier an amount of cash as an advance, to handle petty expenses for a fixed period. ![]() Petty Cash Book is a book of accounts to record sundry routine expenses of the business which are of small value.
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