![]() Under the imprest petty cash system as the totals of different heads of expenditures are posted in ledger accounts after a certain period, the workload of a cashier is minimized to a great extent. Opportunity for the petty cashier to work comfortably.Verification of arithmetical accuracy of petty expenses.This process saves the valuable time of the cashier. Time wastage minimization under this columnar imprest petty cash book petty expenses are not needed to be posted in the relevant ledger account again and again.Īt the end of a period totals of all heads of petty expenses are transferred to a relevant ledger account. In this way, at the beginning of every month, the petty cashier will possess $500 as an imprest fund to meet up day to day expenditures. The petty cashier starts his petty cash book on 1st February with a cash balance of $500. The head cashier pays him again $400 for meeting expenditure of February. 2003 head cashier pays $500 to the petty cashier in advance. In January, the petty cashier spent $400 and submits a statement of expenditure for the spent amount to head cashier. Maintaining a cash book under the stated system is called an imprest petty cash book. The head cashier after proper verification of the expenditures pays an amount equal to the amount spent by the petty cashier again in advance to equalize the prefixed fund of the petty cashier. It should be noted that the amount of expenditure in the hands of a petty cashier cannot exceed the amount he receives. Under this imprest system of petty cash book, the head cashier provides a fixed amount of money to the petty cashier in advance for meeting expenditure of a particular period.Īt the end of the period, the petty cashier submits to the head cashier a statement of expenditures incurred by him. Like columnar petty cash book, it also contains many money columns in the credit side and one money column in the debit side and a particular column and a date column are also similar to that of the columnar or analytical petty cash book. Therefore the primary book wherein the money received from the head cashier and the amount of expenditure for a particular period of an organization are recorded in chronological order of dates in separate money columns of both sides, is called columnar petty cash book. The difference between the amount of cash receipt and the total amount of cash payments is called balance. Thereafter total of money columns and the total of all expense columns of the credit side are drawn. Money spent on purchasing assets or payment of debt is recorded in separate columns known as ledger columns. ![]() To ascertain the total amount of money spent the total money column is used on the credit side for recording all expenses. The credit side contains many money columns as per requirement for recording expenses and the expenses are recorded in a classified way in chronological order of dates. In the debit money column, the amount of cash received from the head cashier is written. Particulars of cash receipts and expenses are written together in a single column known as particulars column and another column is used for writing dates of both debit and credit. It has two sides – the debit side and the credit side. Columnar petty cash book contains many money columns to record day to day expenditures.
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