All 26 Cash Book & Petty Cash questions
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What is the imprest system for petty cash? How is the petty cash book reimbursed and posted? What is a contra entry in the cash book? How do discounts allowed and received appear in the three-column cash book? What entries arise from bank charges, interest, and standing orders in the cash book? Why might the petty cash book not balance and how do you investigate? How is the receipt of capital or a loan recorded in the cash book? How are drawings recorded in the cash book? What is the treatment of cash discounts versus the cash received in the cash book? How is petty cash treated at the period end for the financial statements?
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Bookkeeping › Cash Book & Petty Cash

What internal controls apply to cash and petty cash handling?

Intermediate

Answer

Controls include: the imprest system, pre-numbered authorized vouchers with receipts, segregation between the cashier and the person recording, regular independent cash counts agreed to the book, secure storage (locked box/safe), limits on individual petty cash payments, and prompt banking of cash receipts. These reduce theft and error.
Real-world example An independent surprise count of the petty cash tin, agreed to the book and vouchers, deters misappropriation.

Common follow-ups: Why do surprise counts help? | How does segregation of duties apply to cash?

Bank Reconciliation Correcting Errors Cash Book & Petty Cash
All 26 Cash Book & Petty Cash questions