The Cash Book - The Petty Cash Book

4 important questions on The Cash Book - The Petty Cash Book

What is the purpose of the petty cash book?

It acts as a subdivision of the cash book and records small cash receipts and payments which may be delegated to a more junior member of the staff than the clerk responsibe for the cash book itself.

What is the use of the analysis column next to the amount column from the petty cash book?

It allows the types of expenditures to be grouped together and it allows the business to know not only how much it it paying out in small cash items but what it s spending the money on.

What do you understand about the Imprest System?

It is the most usual way of operating a petty cash system.
Imprest means the opening amount drawn for use as petty cash.
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Why do the petty cashier use voucher number in the petty cash book?

It is used as a reference number so that, should a query arise, the petty cashier can show who authorised the payment.

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