more Flashcards
(7 cards)
What is the purpose of petty cash?
The purpose of petty cash is to pay minor expenses where the use of a cheque is impractical.
Who is likely to be responsible for petty cash?
The petty cash voucher is provided by the cashier or accounting clerk.
What precautions should be taken to ensure the safety of petty cash?
The precautions are that the petty cash is in a lockable metal cash box, and when not being used, the cash box will be deposited in a lockable drawer or in the company safe.
Why is it necessary to keep petty cash records?
It is important because some records have to be maintained to avoid the possibility of fraudulent use.
What is a petty cash voucher?
A petty cash voucher is usually a small form that is used to document a disbursement from a petty cash fund.
Explain the imprest system of keeping petty cash records.
The imprest system is a simple method of recording petty cash accounts, thereby maintaining a cash float.
If you were asked to take over responsibility for petty cash from someone else, how would you ensure that the accounts were correct before taking them over?
To ensure the petty cash accounts are correct when taking over responsibility, I would first review existing records, perform a count, verify reconciliation to ensure the records are accurate, and obtain formal handover acknowledgement to ensure accountability and a smooth transition.
