This presentation highlights the basics of the petty cash system, focusing on the imprest system

1. CAS
H
Printer Ink
Stationery
Taxi fare
Refreshments
Cleaning
supplies
PETTY
Look at these pictures
and suggest how much
these items cost

2. What is Petty
Cash?
•Based on the role play, what is petty cash?
•Petty cash refers to small items of
expenditure which may occur from time to
time•All businesses have different items for
petty cash. Some of the common ones are
stationery, stamps, cleaning supplies, taxi
fares, parking fees and refreshments
•The book that is used to record these
payments is called the PETTY CASH

3. Purpose of Petty
Cash
•It is not practical to pay small amounts by
cheques
•It reduces the number of entries for small
payments in the Cash Book
•The job of recording small payments can
be assigned to a junior clerk
•It is convenient to keep small amounts of
cash in the office which are easy to
access when the need arises

4. Source Documents
•Before petty cash is issued, a person has
to authorise (give permission) for the money
•A PETTY CASH VOUCHER is written out
•This is a small form that shows
information in as much detail as the firm
decided•It provides evidence of payments from
the Petty Cash fund
•Once a bill is given to the Petty Cashier
they should attach the bill to the voucher

5. Features of a Petty Cash
Voucher
No:____
Voucher Number
Name of person
What the money
is being spent on
Amount in figures

6. Features of a Petty Cash
Voucher
Amount of money
in words
Person authorising
payment
Date of transaction
Person receiving
No:____

7. Activity Time
•Prepare the Petty Cash Voucher
Angela went to purchase liquid soap for
the business washroom she spent
$15.50.

8. No:____

9. Imprest System
•The imprest system is a system for
controlling petty cash
•The imprest is the amount that the petty
cashier is given by the regular cashier to
keep in the petty cash box
•Another name is a float
•At the end of the period, (usually a week or
a month), the imprest is restored
•How is this done?

10. Let’s try this:
Richie maintains the petty cash for
MasterMind Store. The imprest she is
given on 1 August is $100. During the
month the following expenses came out
of petty cash and for each item a petty
cash voucher is drawn up:

11. •3 August Ashaki needs
money for taxi fare to
deliver some documents to
San Fernando $25
•4 August The office clerk,
Carla had to purchase liquid
paper $5
•3 August The office needs
coffee, $10 was given to
Karishma to purchase the
coffee at Massy Supermarket

12. •5 August Carlos has to
purchase stamps ($10) and buy
envelopes ($10) to mail some
letters
•6 August Need a Guardian
and an Express newspaper,
Stevanne will go for it, he needs
$4
•7 August Kizzy bought pens
and pencils for $10.50

13. How much was the imprest?
$100
How much was spent for the
week? $74.5
0How much is remaining in the
petty cash?$25.50

14. Can anyone say how the imprest is
restored?Answer:
The petty cashier calculates the total
expenses. The total expenses will be
reimbursed by the main cashier. This
enables the petty cashier to have the
original amount to start the new period
How much is needed to restore the
imprest ?
$74.5
0

15. Next presentation we will look at
recording the information in the petty
cash book

16. Let’s see if the business we looked at
earlier found a solution to their situation.
The conclusion of the role
play