Flashcards in Chapter 9: Petty Cash Book Deck (10)
What does the petty cash book record?
Low-value CASH payments
For small purchases and expenses
Incurred by a business.
Which side are petty cash receipts recorded on?
Debit side (Left side)
Which side are payment recorded on?
Credit side (Right Side)
Egs of transactions recorded in the petty cash book?
1. Stationery items
2. Small items of office supplies.
3. Casual wages
4. Window cleaning
5. Bus, rail and taxi fares
6. Meals & drinks incurred on behalf of the business
8. Tips & donations.
Who controls the petty cash book?
The petty cashier controls the petty cash book.
How do they write up the petty cash book?
The petty cashier writes up the petty cash book from petty cash vouchers.
Which are analysed under various expense headings.
How often is the data from the completed petty cash book transferred to the general ledger?
At regular intervals
(weekly or monthly)
What happens when the data from the completed petty cash book transferred to the general ledger?
The total of each analysis column is debited to the relevant account.
What can the petty cash book combine the roles of?
Petty cash book may combine the roles of:
1. Book of prime entry for low-value cash payments
2. Double-Entry account for petty cash