Page 224 - F1 - AB Integrated Workbook STUDENT 2018-19

Chapter 14

The petty cash system

 Companies will need to keep some cash on hand to pay for small expenses
such as postage stamps, biscuits, taxi fares etc.

 A cheque will be made out to cash, to generate the initial cash for the system.

 As staff claim against the petty cash system, they complete vouchers stating
what the payment is for, and attach a receipt to prove the amount.

 At regular intervals, a further cheque is made out to cash to replenish the petty
cash which has been spent. The supervisor will inspect the receipts and
vouchers at this point.

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