PETTY CASH BOOK

FINANCIAL ACCOUNTING SSS1 SECOND TERM              

WEEK 5 &6

PETTY CASH BOOK

Performance Objectives

Students should be able to:

1. List five features of the Imprest System
2. State seven advantages of keeping the Petty Cash Book on the imprest system

Contents

The Petty Cash Book

This is the subsidiary book of account that is used for recording low-value (petty) cash payments (and occasional small cash receipts). These may include small incidental expenses such as postage, stationery, cleaning, travelling expenses and even small cash payments to creditors

The petty cash book is similar to the Cash Book in that it serves the dual purpose of a book of prime entry and since it is part of the double entry system, it is also…