Kings New York Petty Cash Vouchers
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FAQ
A petty cash voucher is an important internal control document to trace the use of cash within a petty cash fund. This voucher allows management to track the use of cash, the balance that should be within the account, and the person responsible for the approval of a payment from the account. (
The petty cash voucher should provide space for the following: Date. Amount disbursed. Person receiving the money. Reason for the disbursement. General ledger account to be charged. Initials of the person disbursing the money from the petty cash fund.
Obtain all the petty cash vouchers that have not been reimbursed. Check that the vouchers are in order and calculate the total amount disbursed. Deduct the amount from the float to get the balance that should be on hand. Agree the balance calculated to the cash on hand.
How to reconcile petty cash Ascertain the float.Count the cash.Add up the recorded transactions (via vouchers and the log).Categorize disbursements.Identify and investigate the differences between vouchers and the expected balance.Record transactions in your general ledger.Replenish the float for next month.
The petty cash journal entry is a debit to the petty cash account and a credit to the cash account. The petty cash custodian refills the petty cash drawer or box, which should now contain the original amount of cash that was designated for the fund. The cashier creates a journal entry to record the petty cash receipts.
Occasionally, errors may occur that affect the balance of the petty cash account. This may be the result of an employee not getting a receipt or getting back incorrect change from the store where the purchase was made. In this case, an expense is created that creates a cash overage or shortage.
It is an accessible, convenient way to pay for small purchases. When a business doesn't provide access to company credit cards, or employees would rather not wait to be reimbursed for purchases, using petty cash is a simple alternative.
How to reconcile petty cash Ascertain the float.Count the cash.Add up the recorded transactions (via vouchers and the log).Categorize disbursements.Identify and investigate the differences between vouchers and the expected balance.Record transactions in your general ledger.Replenish the float for next month.
Typically, one employee is responsible for controlling petty cash funds. This person is known as the petty cash custodian. The custodian will maintain and document all expenses from the petty cash. By giving this responsibility to one custodian, it means that you will retain internal control over the money.
Write a check to cash for the money you need to restore the original balance. If the combined total equaled the original balance, write the check for the Total Withdrawals amount. If there's a shortage, add the Total Withdrawals and Cash Short and write the check for the total.
