The figures are recorded by posting the expense accounts to the profit and lossaccount and reducing the petty cash balance on the balance sheet. The na_sr cookie is used to recognize the visitor upon re-entry. It allows to record details on user behaviour and facilitate the social sharing function provided by Addthis.com.

The voucher has been set up as four vouchers per template; you may print them out and fill them in by hand or complete them on the computer screen. If you complete them by hand, delete the zeros before printing. Many organisations have a standard method that should be followed for each withdrawal. However, it can vary depending on the size of your business. When there is a shortage of cash, we record the shortage as a “debit” and this has the same effect as an expense. If we have an overage of cash, we record the overage as a credit, and this has the same impact as if we are recording revenue. If there were cash overage, the petty cash account would be debited and the cash over and short account would be credited. In this case, the expense balance decreases, and the year-end balance is the net balance from all overages and shortages during the year.

Cash Voucher Templates- PDF, Word, and Excel

Business owners should have procedures to ensure employees know how to handle small expenses. Establishing these procedures in advance will provide staff with a clear understanding of what they should do if they need to use petty cash. Petty cash accounts are managed through a series of journal entries. Entries are needed to (1) establish the fund, (2) increase or decrease the balance of the fund (replenish the fund as cash is used), and (3) adjust for overages and shortages of cash. Consider the following example. In a pinch, petty cash is sometimes used to provide change for customers when your tills are out. So it’s really not worth risking running out of petty cash.

Employees may be issued with bank debit cards. This has the disadvantage of not obtaining all receipts and having a high number of transactions that aren’t recognised in the bank. It might also provide an employee with limitless cash that isn’t agreed upon. If you give a cash advance to an employee, complete the voucher as follows: Enter the total amount given. Enter the change as a minus figure. The total is then calculated as the amount spent. MediaMath sets this cookie to avoid the same ads from being shown repeatedly and for relevant advertising. The imprest system is now used to pay cash expenses as they arise during the accounting period. Suppose as an example, there are two expenses during the period as follows:

Establishing The Imprest Account

It is important to regularly reconcile the petty cash box to ensure that no money is missing and that all vouchers are correct. The reconciliation can be done monthly or more regularly if needed. Its ease and convenience are the main reasons that businesses have continued to use a petty cash system – giving team members immediate access to resources as and when they’re needed. For each expense a petty cash voucher is completed, proof (invoice or other document) is attached, and a signature is obtained to indicate that cash has been received from the petty cash fund.