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The Petty Cash Voucher is

• Used instead of a cheque for small payments

• The documentary evidence that a petty cash payment has been made

• Is the document taken and presented for payment for small amounts ie milk

• A numbered document used to record the balance of the Petty Cash Fund

The Petty Cash Book is the summary of the Petty Cash Vouchers.

• True

• False

A book of account used to record small payments is known as the ……

• Cash book

• Petty cash book

• Sales daybook

• Ledger book

What the purpose the petty cash book?

• To keep record of the major expenses of business

• To keep record of petty expenses of the business.

• To keep record of the debtors who make payments of small amounts.

• To access the amount of cash left in the business

The ___________ of petty cash is where the amount spent each period is restored so that the petty cashier starts each period with the same amount.

• Cash System

• Imprest System

• Credit System

• Current System

“Taxi fare” will be recorded in the ______________ section of the petty cash book.

• Postage & Internet

• Transportation

• Stationery

• Sundry

The Balance of Petty Cash is :

• (a) An Expense

• (b) Revenue

• (c) An asset

• (d) Liability

The business receive money on the ______________________ side of the cash book.

What are the typical entries found in a petty cash book?

• Vendor, Category, Quantity, Total

• Invoice Number, Due Date, Payment Method, Vendor

• Date, Description, Amount, Balance

• Employee Name, Department, Approval, Receipt

State reasons or advantages for maintaining a petty cash book.

• Removes small cash payments from the main cash book.

• Reduces the number of entries in the main cash book.

• Reduces the number of entries in the books of prime entry.

• Allows the chief cashier to delegate some of the work.

• Provides training for staff members.