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]

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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