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Chapter 9

Petty cash reconciliation

Normally, petty cash is controlled by an imprest system, whereby there is a
predetermined cash float which is periodically reimbursed from the main bank
account. It is then possible to reconcile the imprest amount with the balance of cash
held plus receipts and vouchers supporting petty cash payments.

Example 2

Beechfield makes use of a petty cash book as part of their bookkeeping
system. The following is a summary of the petty cash transactions for the
month of November 20X9.

$
1 Nov Opening petty cash book float received from cashier 350
2 Nov Cleaning materials 5
3 Nov Postage stamps 10
6 Nov Envelopes 12
8 Nov Taxi fare 32
10 Nov Petrol for delivery van 17
14 Nov Typing paper 25
15 Nov Cleaning materials 4
16 Nov Bus fare 2
20 Nov Visitors’ lunches 56
21 Nov Mops and brushes for cleaning 41
23 Nov Postage stamps 35
27 Nov Envelopes 12
29 Nov Visitors’ lunches 30
30 Nov Photocopying paper 40

Required:

Prepare a petty cash book for the month using analysis columns for
stationery, cleaning, entertainment, travelling and postages. Show
clearly the receipt of the amount necessary to restore the float and the
balance brought forward for the start of the following month.

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