What Is a Petty Cash Voucher or Slip?

The intent is to simplify the reimbursement of staff members and visitors for small expenses that generally do not Exceed $25.00, such as taxi fares, postage, office supplies, etc. You will also need to set up a petty cash account in the asset section of your financial reports. If there’s a shortage or overage, a journal line entry is recorded to an over/short account. Heather needs a $315 reimbursement to bring the petty cash balance back to $500. Every month, or as cash is needed, the custodian should summarize the petty cash log by expense account and record a journal entry debiting each expense and crediting petty cash.

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• Just to make sure that employees don’t need to wait that long, they are given petty cash.
• This is one of the simplest petty cash voucher templates that can be utilized for quick and easier documentation of petty cash funds.
• You can streamline the payments and ensure they get processed quickly and accurately.
• If the employee needs to spend more than the petty cash request limit, they can use the business credit card.
• The balance in the petty cash account is now $300, which is where it was originally authorized to be.
• Having a petty cash account is  just more convenient than going to the accounts payable clerk every time someone needs a stamp or a liter of coffee for a meeting.

Cash vs Petty Cash: Usage & Purpose

As funds are assigned for these expenses so it becomes important to document all the expenses. So petty cash voucher templates are utilized to record or document all these expenses on petty cash funds. These templates work as a receipt of the payment delivered to the supplier for meeting miscellaneous expenditures of the business. If you are too interested in exploring various petty cash voucher templates available online then here are a few top petty cash voucher samples that you can try.

How do you record in a cash journal?

By subtracting the original amount by the total of all petty cash receipts, you should have the same amount of cash as what is left in your fund. This should work whether your business operates with an open, fixed or imprest system for petty cash . This means that companies don’t need to have a petty cash voucher book and separate receipt book since the document is the same and only the title is different. As mentioned earlier, the term petty cash receipt is interchangeable with voucher. They can both be used to document spending from the petty cash fund, no matter whether they are issued before or after the purchase. All petty cash transactions need to be supported by a petty cash voucher.

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• Whenever money is taken out of the petty cash fund, the recipient fills out a petty cash voucher.
• When the petty cash fund is replenished, the vouchers are used to account for the disbursements and to record them in the company’s general ledger.
• When petty cash is used for business expenses, the appropriate expense account — such as office supplies or employee reimbursement — should be expensed.
• There are several petty cash management solutions, like the one offered by Happay.
• The receipts and petty cash reconciliation sheet go to the bookkeeper for entry into the accounting system.
• A petty cash voucher is a standard form used as a receipt whenever cash is withdrawn from a petty cash box.
• The petty cash voucher template that specifies details about the petty cash expenditures can be drafted in word doc or PDF or on Excel.

A petty cash fund is a current asset account that should appear on your balance alongside other cash accounts, such as checking and savings accounts. After recording the journal entry, the custodian should receive $300 cash or check from the owner or cashier. A petty cash voucher is a form used to document a disbursement (payment) from a petty cash fund. Petty cash vouchers are used as part of a petty cash system to keep track of all disbursements, ensuring that there is a paper trail for all petty cash transactions. When the petty cash fund is replenished, the completed petty cash vouchers provide the documentation for the replenishment check. Companies normally use checks to pay their obligations because checks provide a record of each payment.

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The balance in the petty cash account is now $300, which is where it was originally authorized to be. For example, if there are un-reimbursed expenditures from petty cash at the end of the year, expenses are understated and cash overstated. Whatever steps are deemed necessary (such as surprise counts) should be performed to assure that controls are adequate. The check is cashed and the money is placed under the control of one designated individual.

The journal entry on the petty cash voucher balance sheet should list a debit to the business bank account and a credit to the petty cash account. When petty cash is used for business expenses, the appropriate expense account — such as office supplies or employee reimbursement — should be expensed. When a petty cash fund is in use, petty cash transactions are still recorded on financial statements. The journal entry for giving the custodian more cash is a debit to the petty cash fund and a credit to cash.

He spends most of his time researching and studying to give the best answer to everyone. Tim is a Certified QuickBooks Time (formerly TSheets) Pro, QuickBooks ProAdvisor, and CPA with 25 years of experience. Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs. The entry to record the reimbursement would debit the expense accounts reported by the custodian. To create a petty cash fund, a check is written to cash for a set amount such as $75 or $100.

How to record petty cash journal entries?

The petty cash custodian will keep all petty cash items inside a lockbox. Only the custodian can access the lockbox—and it mustn’t be left opened and unattended. The imprest system is a method of managing a petty cash fund, where the fund is replenished to a fixed amount after each use, based on the vouchers submitted.