Petty Cash Voucher

Definition

A petty cash voucher is a document used to record and justify the use of funds from a petty cash fund. It serves as evidence of the disbursement of small, incidental expenses that are paid out of the petty cash account.

5 Must Know Facts For Your Next Test

1. Petty cash vouchers are used to document the purpose, amount, and recipient of each petty cash disbursement.
2. The petty cash voucher typically includes information such as the date, the name of the person receiving the cash, the amount, and a description of the expense.
3. Petty cash vouchers are essential for maintaining accurate records and ensuring the proper use of the petty cash fund.
4. Petty cash vouchers are used in the process of replenishing the petty cash fund, as they provide the necessary documentation to record the expenses in the accounting records.
5. The use of petty cash vouchers helps to maintain the integrity of the petty cash fund and ensures that the fund is used for its intended purpose.

Review Questions

• Explain the purpose and importance of a petty cash voucher in the context of a petty cash fund.
  • The primary purpose of a petty cash voucher is to provide documentation and justification for the disbursement of funds from a petty cash fund. It serves as a record of the small, incidental expenses paid out of the petty cash account, ensuring that the fund is used for its intended purpose and maintaining the integrity of the petty cash system. The petty cash voucher is essential for the replenishment of the fund, as it provides the necessary information to accurately record the expenses in the accounting records.
• Describe the key components of a petty cash voucher and how they contribute to the effective management of a petty cash fund.
  • A petty cash voucher typically includes the following key components: the date of the disbursement, the name of the person receiving the cash, the amount of the expense, and a description of the purpose of the expense. These components serve to document the use of the petty cash fund and ensure that the disbursements are made for legitimate and authorized purposes. The information on the petty cash voucher is crucial for the periodic replenishment of the fund, as it provides the necessary details to record the expenses in the accounting records and withdraw the corresponding amount from the main cash account.
• Analyze the role of petty cash vouchers in the context of the imprest system and the overall management of a petty cash fund.
  • In the imprest system, petty cash vouchers play a critical role in the effective management of the petty cash fund. The vouchers provide the documentation necessary to replenish the fund to its fixed, predetermined amount after each use. By recording the details of each disbursement on the vouchers, the organization can maintain accurate records of the fund's activity and ensure that the cash balance matches the expected amount. Additionally, the petty cash vouchers serve as a control mechanism, allowing management to review the legitimacy and appropriateness of the expenses charged to the petty cash fund. Overall, the use of petty cash vouchers is essential for the proper functioning of the imprest system and the effective oversight of the petty cash fund.

Related terms

Petty Cash Fund: A petty cash fund is a small amount of cash on hand used to pay for minor, day-to-day expenses that are too small to justify the effort of cutting a check.

Imprest System: 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.

Reimbursement: Reimbursement is the process of replenishing the petty cash fund by recording the expenses in the accounting records and withdrawing the corresponding amount from the main cash account.