Yo yo yo. I came back from America and my class did this while I was gone and I understood nothing. This short explanation of a petty cash book really helped me a lot. Thanks
I have been tearing my hair out in exasperation and dreading doing the petty cash section in my coursework because I have been finding it confusing. Now, after watching your tutorial, I am beginning to understand it much better! :) Thank you for your clarity.
HI Azmera. Thanks for your question.For grade 8-12 Accounting it would be fine to classify the loan under sundry in the petty cash. But in the working world the employee would be a receivable(current asset) until the small loan is paid back.If the employer charged interest then that would be interest received(income). Its not uncommon to sometimes have more cash in the petty cash but in this case it would have a zero effect seeing as the money is taken out and will be paid back if no interest is charged.I hope this answers your question.
Thank you sooooo much u helped me a lot. Everything was clearly explained and u reminded us all the concepts during the transactions u are really awesome!!
Om my gosh,I loved every bit of it!How you are explaining?Wonderful.👌This was so helpful thank you because i had no clue what's usually done,and with this i do!! Keep it up and God bless you!
I dont think that was necessary around 12:40 all you have to do is subract the difference between the beginning balance (1,600- 1,351.70= 248.3) and you now know whats left in the account and what amount should be added to it which is 1,351.70 if the account should always have 1,600.00
there are always more efficient ways to do things. i prep the videos on how the curriculum is structured. if that's how it is in the text book then that is how it is going to be in the exam. also take note that this was back in 2015.
thank you , but you considered a loan to a staff as expense, how will u treat it when your staff bring the money back, you will have more cash.i need more explanation
hey, i have a question. if the question stated if it is a refund, which column should i put in? if it's given a ledger account column, do we put the amount in that column or what?
+ Lindley Coetzee Good day/evening Lindley, I have a question.. is petty cash- initial advance the same thing as float? I have a task whereby A) I have to enter information into a multi-column petty cash book maintained on the imprest system. no. 1 on the list is 'Cash cheques from head cashier=R600 (600 rands). .. and the list goes on. B) Rule off the month's transactions, bring down the relevant balance, and restore the imprest amount to R600.... Do I need to know the float amount or I can just work without knowing it? on A) will I enter that R600 under sundries? Thanks.
+Salome Leseyane Hi. The petty cash is started with a float. So if the float is R1000 at the beginning of the month then it needs to start with R1000 at the start of the next month.The "Cash cheques from head cashier=R600" you refer to is whereby the petty cash is replenished. This is a receipt(dr) in your petty cash book and an outgoing payment(cr) in your cash book.I hope I was able to answer your question.
very unlikely in a school question but in that case the petty cash would need to be topped up. in that case the top up amount would entered in the receipt column.
Correct me if I'm wrong, but can't you just find the total at the end of the month and then put that in the next month, and then put the receipt on the debit side so that you can have it back at 1600? I mean, I understand your method, but the method I learnt at school is a little bit different.
Just wanted to clarify something; You said "CB" stands for "Cash Book". My understanding is that it stands for "Check Book" as that is the instrument used to draw the money whereas, there is no "Cash Book". Is Cash Book standard accounting/booking terminology?
Yes it is .You also get cash receipts book and cash payments book which is 2 separate books.....but all they are is the debit side and the credit side of the cashbook shown in 2 separate books
Float is the amount receive for the period. If the petty cashier has a balance from the previous month, it would be that balance plus what was refunded. This would give you the float. This is my understanding.
Hi, thank you so much for posting the video, it helped me so much. I would like to know if you have other posts especially on financial accounting subject please. Thank you.
+Lindley Coetzee Ok, thank you Lidley. If I have questions I will put them here. I am currently busy with Financial accounting assignments. I never had to do this subject before now I am coming across it and I am struggling quite a lot. Thank you again.
depends what your teaching says. usually they give the 1st voucher number and then you need to continue with the rest. that's what they do/did in Namibia.
