Petty cash

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Petty cash is a small amount of discretionary funds in the form of cash used for minor expenditures. [1]

The most common way of accounting for petty cash expenditures is to use the imprest system. [2]

Audit controls

Oversight of petty cash [3] is important because of the potential for abuse. Examples of petty cash controls include a limit on disbursements and monthly audits by someone other than the custodian. [4] Use of petty cash is sufficiently widespread that vouchers for use in reimbursement are available at any office supply store.

The petty cash daybook is one of the daybooks used in bookkeeping and the double-entry bookkeeping system. [5]

References

  1. ↑ P. Hosein (29 July 1988). Principles of Accounts (Cxc). Heinemann. p. 92. ISBN   978-0-435-98309-3.
  2. ↑ Alan Trenerry (1999). Principles of Internal Control. UNSW Press. pp. 125–. ISBN   978-0-86840-401-1.
  3. ↑ Irfan Imtiaz. "Petty Cash Balance Confirmation Letter Format for Audit".
  4. ↑ Peggy M. Jackson (28 November 2006). Sarbanes-Oxley for Small Businesses: Leveraging Compliance for Maximum Advantage. John Wiley & Sons. pp. 101–. ISBN   978-0-470-05004-0.
  5. ↑ Diane Canwell; Jon Sutherland (2005). BTEC First Business. Nelson Thornes. pp. 105–. ISBN   978-0-7487-9431-7.
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