Who signs a petty cash voucher?

The custodian of petty cash should sign the receipt to indicate that he authorized the funds. However, you should also have the recipient sign the receipt. This makes it easier to follow the paper trail if there is a dispute about the amount dispensed from petty cash or the purpose for which it was used.

Who signs a cash receipt?

The name of the payer. The amount of cash received. The payment method (such as by cash or check) The signature of the receiving person.

Who approves petty cash?

An accounting staff person reviews and approves the form and sends a copy to the accounts payable staff, along with all vouchers referenced on the form. The petty cash custodian retains a copy.

Who is responsible for managing petty cash?

petty cash custodian
Typically, one employee is responsible for controlling petty cash funds. This person is known as the petty cash custodian. The custodian will maintain and document all expenses from the petty cash. By giving this responsibility to one custodian, it means that you will retain internal control over the money.

What is receipts into petty cash?

What is a Petty Cash Receipt? A petty cash receipt is a form used to document cash payments from a petty cash box. The form is filled out by the petty cash custodian, documenting the reason for a petty cash payment and the amount of the payment, as well as the date.

How do you do petty cash receipts?

Helpful Tools

1. No.
2. Date – Enter the date that the petty cash receipt is prepared.
3. Pay To – Enter the name of the payee who received the petty cash disbursement.
4. $ (Dollar Amount) – Enter the total amount of the payment.
5. Description – Enter a brief, but specific explanation of what the funds were used for.

Do you need a receipt for petty cash?

An employee using petty cash should provide a receipt for the purchase to the petty cash custodian. Give the receipt to your finance department or the person who handles your small business books. You typically evaluate your petty cash fund at the end of each month for more accurate balances.

How do you report petty cash?

The four steps to do petty cash accounting and recording are:

1. Establish Petty Cash Policy & Procedures. The first thing you need to do is document your petty cash procedures and communicate them to all employees.
2. Set Up a Petty Cash Log.
3. Create Journal Entries to Record Petty Cash.
4. Reconcile the Petty Cash Account.

How do you audit petty cash?

How to Audit Petty Cash

1. Meet the person who serves as the normal custodian of the petty cash — usually a secretary or manager.
2. Count the currency and coin.
3. Sum all the vouchers and receipts used to justify payments from petty cash or records of transactions adding to the cash.
4. Add the cash total to the voucher total.

How do you account for petty cash?

The petty cash journal entry is a debit to the petty cash account and a credit to the cash account. The petty cash custodian refills the petty cash drawer or box, which should now contain the original amount of cash that was designated for the fund. The cashier creates a journal entry to record the petty cash receipts.

How do you account for petty cash expenses?

Journal entry for putting money into the petty cash fund The entry must show an increase in your Petty Cash account and a decrease in your Cash account. To show this, debit your Petty Cash account and credit your Cash account. When the petty cash fund gets too low, you must refill it to its set amount.

What is the purpose of petty cash?

The purpose of a Petty Cash Fund is to allow for the reimbursement or purchase of minor, small-dollar (less than $100), unanticipated business expenses, where the use of alternative means is neither feasible nor cost effective.

What is petty cash and how can it be used?

Petty cash is often used for items purchased in local shops or small expenses, therefore they will not need to go through a purchase order system as in most cases the cost of the items is £25 or less. However the maximum amount of a petty cash purchases allowed varies from business to business. How should I manage petty cash?

How do you verify a petty cash deposit?

Petty cash procedure. Disburse cash. Count the cash being disbursed, and have the recipient count it as well, to verify the amount being paid. The recipient of cash should then sign the voucher; this provides proof that the custodian did not fill out the voucher and simply pocket the corresponding amount of cash.

How do you process a petty cash voucher?

Petty cash procedure. The voucher information may come from the petty cash book. An accounting staff person reviews and approves the form and sends a copy to the accounts payable staff, along with all vouchers referenced on the form. The petty cash custodian retains a copy.

What is the procedure for petty cash reconciliation?

This involves summarizing all disbursements made and issuing cash back to the fund for that amount. The procedure for petty cash funding is outlined below: Complete reconciliation form. Complete a petty cash reconciliation form, in which the petty cash custodian lists the remaining cash on hand, vouchers issued, and any overage or underage.