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Topic 8 - Petty Cashbook


What is the Petty Cash Book?

The Petty Cash Book records all payments made from the petty cash fund.

Where is the Petty Cash fund found?

The petty cash fund is a current asset and is found in the Balance Sheet.

What is the Petty Cash Impress System?

In the Imprest System, the petty cashier is always reimbursed with the amount of petty cash paid out so that at the beginning of every period, he will start with the same amount of petty cash float.


Advantages of the Petty Cash Imprest System

  • The Imprest System is very useful in controlling and monitoring the flow of petty cash for the following reasons:

·         The elements of safety and accountability are maintained since the petty cash is under the responsibility of a particular employee.

·         Prevention of fraud – All payments of petty cash must be verified by the petty cash vouchers, endorsed by another officer and supported by receipts or memos. The vouchers also bear the signature of the claimant to the money.


  • Control is enhanced by serial numbering of petty cash vouchers.


  • There will not be overcrowding of the Bank Account in the ledger as petty items are not entered in the Bank Account. 

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