Ready-to-use Petty Cash Book Template in Excel, OpenOffice Calc & Google Sheet to chronologically record routine sundry expenses.
It consists of Ordinary Petty Cash Book Template and Imprest Petty Cash Book Template. You can use whichever suits your needs.
Moreover, it consists of printable formats of Petty Cash Book as well as Imprest Petty Cash Book. The summary section helps you to easily reconcile and spot the difference of the Petty Cash Book in just minutes.
In addition to the above, this article consists of definitions, types, processes, printable formats, journal entries, advantages, disadvantages, and much more about the petty cash book. It can be helpful to students as well as individuals to easily learn Petty Cash Management.
This template can be useful to accountants, department heads, accounting officers, students, and individuals to manage their petty cash expenses.
Table of Contents
Download Petty Cash Book Template (Excel, OpenOffice Calc & Google Sheet)
Petty Cash Book and Imprest Petty Cash Book Template with predefined formulas to easily record and manage routine sundry expenses. Download by clicking below on the desired format:
Additionally, you can download other useful templates like Accounts Payable Template, Accounts Receivable Template, Payroll Template With Attendance, and Employee Salary Sheet.
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How To Use Petty Cash Book Template?
This template consists of 2 types of Petty Cash Books: Simple Petty Cash Book Template, and Imprest Petty Cash Book Template.
Simple Petty Cash Book
The debit side consists of the following columns:
Date
Description
CBN
Amount
Insert date on which you receive the lump sum petty cash funds. Add a description and insert a receipt number.
The credit side consists of the following columns:
Date
Description
VN
Amount
Insert date on of payment, add a description and insert a voucher number. The template automatically totals the debit and credit sides.
Lastly, enter the petty cash amount. On the credit side, record date-wise petty cash expenses along with the voucher number.
In the end, the template consists of a summary section. This helps in the reconciliation process. It displays the total amount of receipts, payments, and the balance as per the book.
Count the cash in hand in the petty cash box and insert the amount in the Actual cash column and it will spot the difference. It also shows the reconciliation status.
If the Actual amount of Petty Cash is 0, it displays “Reconciled”. If the amount is less than the Petty Cash Book Balance then it shows “Deficit” and displays “Excess” if the amount is greater than the Petty Cash Book Balance.
Imprest Petty Cash Book
Insert the month and the fixed amount of imprest petty cash fund. This amount automatically reflects on the debit side. If there are additional amounts received during a month, you only need to record them in this section.
The debit side consists of the following columns:
Date
CBN
Receipts
The credit side consists of the following columns:
Date
Description
VN
Payments
Courier
Pantry
Stationary
Traveling
Repair
Telephone
Fuel
Advertising
On the credit side, insert record the date, select the appropriate description of the payment, enter the voucher number and the amount of payment.
The template automatically will record the payment in the respective column based on your selection in the description column.
Similar to the Simple Petty Cash Book, the Imprest Cash Book also consists of Petty Cash Summary. This helps in the reconciliation process. It displays the total amount of receipts, payments, and the balance as per the book.
Count the cash in hand in the petty cash box and insert the amount in the Actual cash column and it will spot the difference. It also shows the reconciliation status.
If the Actual amount of Petty Cash is 0, it displays “Reconciled”. If the amount is less than the Petty Cash Book Balance then it shows “Deficit” and displays “Excess” if the amount is greater than the Petty Cash Book Balance.
Furthermore, the analytical or the imprest petty cash book also consists of a graphical representation of the spending during the period.
Petty Cash Receipt Template
Use the following receipt and voucher template for petty cash purposes.
Select the Receipt from the drop-down list.
Fill in the date, description of the receipt, and the amount. Print the receipt.
Petty Cash Voucher Template
Fill in the date, description of the payment, and the amount. Print the voucher.
What Is Petty Cash Book?
The petty cash book is a ledger book. The petty cash book records routine small expenses of the business that are recurring in nature in chronological order.
To avoid too many cash entries in Cash Book, businesses allocate small funds to handle petty expenses. The petty cashier makes a payment and issues a voucher for the payments. At the end of the defined period, the cash book is reconciled and petty cash is replenished.
A petty cash book is maintained in both small and large businesses. Small businesses have one petty cash fund whereas big businesses have department-wise petty cash funds. It solely depends upon the volume of transactions.
Basically, it is a type of cash book which handles small, routine, and recurring expenses like courier, repairs, pantry, etc.
The word petty comes from the French word “Petit” which means small. Hence, as this book records small, routine cash payments, it is a petty cash book.
Purpose Of Petty Cash Book
The main purpose of the petty cash book is to decrease the load of head cashiers or accountants to manage small routine transactions. A petty cashier is appointed to record, manage and reconcile the petty cash funds.
Moreover, this book helps to reduce unnecessary cash entries in the cash book. Generally, cashiers of big companies have lots of cash entries that amount to thousands of dollars each day.
To simplify the work of the head cashier and release his unnecessary workload, businesses maintain petty cash. Thus, petty cash funds are given to other responsible staff of that particular department.
In simple terms, the main objective of a petty cash book is to cater to small day-to-day expenses where the use of alternative payments like cheques or credit cards is neither feasible nor cost-effective.
Types of Petty Cash Book
There are two types of Petty Cash Book in accounting: Ordinary Petty Cash Book and Impreset Petty Cash Book. These both types of Petty Cash books defer based on the petty cash management systems.
Let us understand each type in brief.
Ordinary Petty Cash Book
Ordinary Petty Cash Book or Simple cash book consists of two sides debit and credit. In the ordinary petty cash system, a petty cashier receives a lump sum amount. Cashier records date-wise receipts of cash from the head cashier.
The petty cashier makes payments for sundry expenses like pantry, couriers, promotions, stationery, telephone, etc against a voucher.
When the petty cash funds amount to zero, the petty cashier prepares an expense report and presents it to the head cashier. The head cashier reconciles the expenses and allocates other petty cash funds.
Ordinary Petty Cash Book Format
Given-below is Ordinary or Simple Petty Cash Book Format:
The debit side consists of cash receipts from the head cashier whereas the credit side consists of the payments made against each petty expense. It is advisable to record inward cash entries against receipts numbers and outward payments against voucher numbers.
Imprest Petty Cash Book (Analytical Petty Cash Book)
In the Imprest Sytem of Petty Cash, the head cashier allocated a fixed amount of petty funds for a specific period. Another name for Imprest Petty Cash Book is Analytical Petty Cash Book.
The petty cashier records the petty transaction and presents an expense report for reconciliation to the head cashier at the end of the period. After reconciliation, the head cashier issues the same amount of cash previously fixed.
Imprest Petty Cash Book Format
Given-below is Imprest or Analytical Petty Cash Book Format:
This type of cash book also consists of two sides. But there is a different column for each type of expense. This book is perfect when the volume of transactions is higher.
Process To Manage Petty Cash Book
Simple 7 step process to manage your petty cash book:
- Receive Petty funds from the head cashier issue a receipt for the amount received.
- Report the receipt on the debit side of the petty cash book with the date, receipt number, and amount.
- Make payments to authorized payments under petty cash.
- Issue a voucher for payments to keep a record.
- Report the voucher on the credit side of the petty cash book with the date, voucher number, details of payment, and amount.
- Balance the petty cash and review the actual petty cash in the Petty Cash box.
- Reconcile at the end of the period and replenish the petty cash funds.
Journal Entries For Petty Cash
There are two stages of petty cash reporting in the ledger.
Journal Entry for Petty Cash Funds Issued to Petty Cashier
Initially, the cash is issued from the head cashier to the petty cashier. Debit the Petty Cash Account and credit the Cash Account.
Petty Cash Account – Dr
To Cash Account – Cr
Journal Entry for Payments From Petty Cash
Whenever a petty cashier makes a payment, they issue a voucher and report the same into the petty cash book. Head cashier reports these into office expenses. Hence, the cashier debits the Sundry Expense account and credits the petty cash account.
Sundry Expenses Account – Dr
Petty Cash Account – Cr
Where the volume of expenses is higher in sundry expenses, you can directly debit each expense account.
Repair & maintenance Account – Dr
Stationery Account – Dr
Fuel Account – Dr
Petty Cash Account – Cr
Advantages and Disadvantages of Petty Cash
Petty Cash has both advantages and disadvantages.
Advantages
- Decreases the load of head cashier or accountant.
- Simple and easy to use.
- It provides convenience to handle small day-to-day expenses.
- The imprest system reduces helps in reducing misuse of cash as the head cashier can reduce the float if it is more than the adequate requirement.
Disadvantages
- Security risk: Hard to track and subject to fraud, theft, misuse
- Requires manual monitoring, record-keeping
Reconciliation of Petty Cash Book
The reconciliation of petty cash is very important to save any fraudulent use of petty cash. A periodic reconciliation is compulsory.
It is a simple 4 step process:
- At the end of the period, check the actual cash in hand balance.
- Match the actual cash balance with the Petty Cash Book balance.
- If there is an excess of funds, there are chances of double reporting whereas if there is a deficit there are chances of missed entries.
- Furthermore, the head cashier checks the receipts and payment vouchers against the said payment along with the vendor invoices.
Frequently Asked Questions
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