8

PETTY CASH RECONCILIATION

Each time the petty cashier pays out a sum of money from the petty cash float then this payment must be supported by a valid, authorised petty cash voucher. Each petty cash voucher is, in turn, retained until the petty cash float is due to be topped up to the imprest amount.

8.1 CASH AND VOUCHERS

At any point in time the cash notes and coins in the petty cash float plus the vouchers for amounts reimbursed should be equal to the initial amount in the petty cash box, the imprest amount. For control purposes it is important that this is checked at regular intervals.

ACTIVITY 5

A petty cash system is operated with an imprest amount of $200. Each Friday, just before the petty cash float is topped up to $200, the amount of cash is counted and the vouchers supporting payments made in the week are totalled. On this particular Friday the cash in the petty cash float consisted of the following:

Quantity
4$20 notes
2$10 notes
2$5 notes
5$1 coins
750c coins
1520c coins
610c coins
45c coins
92c coins
1c coins
MAINTAINING PETTY CASH RECORDS
CHAPTER 8

The petty cash vouchers for payments made paid during the week were as follows

Petty Cash Voucher
No 712
Date 19/6/X5
For what required
Tea break
6 73
Signature
P Peers
Authorised
J Morris
Petty Cash Voucher
No 730
Date 19/6/X5
For what required
Stationery
11 30
Signature
S Pilan
Authorised
J Morris
Petty Cash Voucher
No 733
Date 20/6/X5
For what required
Milkman
21 90
Signature
P Peers
Authorised
J Morris
Petty Cash Voucher
No. 734
Date 19/6/X5
For what required
Rail fare
27 60
Signature
FT Winter
Authorised
J Morris
Task

Reconcile the imprest amount of $200 consisting of notes and coins on hand plus vouchers for payments made.

For a suggested answer, see the 'Answers' section at the end of the book.

8.2 DIFFERENCES ARISING

In Activity 5, the reconciliation of cash and vouchers showed that there were no differences arising. The notes and coins plus the vouchers totalled the imprest amount.

However, in some instances, when the reconciliation is carried out there may be differences. Whenever a difference arises this must be investigated immediately. Possible reasons for differences may be:

181
RECORDING FINANCIAL TRANSACTIONS

ACTIVITY 6

On Monday 3 January 20X2, just before the petty float was due to be topped up to the Imprest amount of $50, the cash and vouchers at that time were counted.

The note and coins in the float were as follows:

  • 1 $5 note
  • 2 $1 coins
  • 6 50c coins
  • 5 x 20c coins
  • 3 x 10c coins
  • 2 x 5c coins
  • 24 in small denomination coins

The following vouchers were with the float as evidence of recent payments made:

Petty Cash Voucher
No. 1142
Date 29/12/X1
For what required
Stamps
6 50
Signature
G. Jones
Authorised
P Smith
Petty Cash Voucher
No. 1143
Date 30/12/X1
For what required
Taxi
7 00
Signature
P
Authorised
P Smith
Petty Cash Voucher
No. 1144
Date 30/12/X1
For what required
Window cleaner
21 00
Signature
G. Jones
Authorised
P Smith
Petty Cash Voucher
No. 1145
Date 30/12/X1
For what required
Bus fare
1 20
Signature
S Cameron
Authorised
P Smith
Petty Cash Voucher
No. 1146
Date 30/12/X1
For what required
Photocopying
66
Signature
G. Jones
Authorised
P Smith
MAINTAINING PETTY CASH RECORDS: CHAPTER 8
Task

1 Reconcile the cash and vouchers in the petty cash box to the imprest amount. Give possible reasons for any difference that is discovered.

For a suggested answer, see the 'Answers' section at the end of the book.