Journal Vouchers | Petty Cash Fund | Petty Cash Reimbursement

 

 

Types of Journal Vouchers | Types of General Journal Vouchers

Under the new accounting system of the Government of Nepal, journal vouchers are classified into the following three categories; they are:

(A)	Journal voucher for expenditure transactions
(B)	Journal voucher for advance and clearance of advance transactions
(C)	Journal voucher for miscellaneous transactions:
	(a)	Revolving or imprest fund released
	(b)	Budget release
	(c)	Salary and its deduction
	(d)	Establishment of petty cash fund
	(e)	Security deposit
	(f)	Budget transfer
	(g)	Inter office loan
	(h)	Rectification of errors
	(i)	Annual accounting closing

 

 

Petty Cash Fund | Petty Cash Reimbursement | Imprest System of Petty Cash Book

Petty cash fund

In practice, it is inconvenient to issue cheques for small amounts of transactions like Rs 20, Rs 50 and Rs 100 and so on.

Some tiny amounts are needed for the payment of day-to-day activities in the office.

Unplanned expenses like bus fare, daily labour wages, tea and coffee, stationery and others.

Such small payments are made through petty cash books. 

 

For these small expenses, a petty cash fund is created in government offices.

Generally, petty cash fund is established on imprest (advance) system.

It is established under the responsibility of an assistant or junior accountant.

It is created at the beginning of the fiscal year.

It is maintained for a week, fortnight or a month.

It is reimbursed beginning of the second period.

At the end of the fiscal year, it is closed.

This process goes on onward.

 

 

Petty cash means an amount set aside to meet the expenses of a small amount.

The petty cash book is used for recording petty payments.

In the Government offices of Nepal, a specific fund is created for small payments.

It is Rs 5,000 in operating level offices and Rs 10,000 in central level offices.

However, these amounts can be amended as per the need of the office.

The person who is responsible to maintain petty cash is known as a petty cashier.

He/she minimizes the workload of the accountant.

 

 

Petty cash reimbursement

Here, reimbursement means to pay cashback to a petty cashier to spend money for official purposes.  

 

The petty cashier can hold this maximum amount of cash at any time.

When the cash level goes down, the petty cash imprest is injected with cash by drawing a cheque.

The amount of reimbursement is equal to the expenses paid through petty cash.

 

 

Cash reimbursement demand form

After paying the amount in the different head, it has short of money.

Reimbursement of petty cash fund is operated on the principle of imprest system.

It means the petty cashier gets refunded the amount from the chief cashier for the expenses he has made from this fund.

For this purpose, the Cash Reimbursement Demand Form is used as an evidence document.

When a petty cashier needs reimbursement of petty cash fund expenses, he/she submits a form to the chief cashier.

 

 

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Imprest system of petty cash book

Imprest means to advance.

Under the imprest system, advance money is given to the petty cashier.

Generally, a petty cashier takes money at the beginning period.

He spends small expenses from this money.

Expenses vouchers are checked by a senior accountant at the end of the period.

After checking the vouchers, the senior accountant gives actually spent money to the petty cashier.

 

Suppose on 1^st Shrawan, petty cash fund is created by $/₹/Rs 1,000.

The petty cashier has spent Rs 930 till last January.

Now, he has Rs (1,000 ̶ 930) Rs 70.

On 1^st Bhadra Rs 930 is given to the petty cashier.

Now, He/she has the same amount of Rs 1,000 for the current month.

This process goes on for the next month.

 

 

Journal Vouchers

SN	BH No.	Program	Particulars	LF	Sources				Debit	Credit
		Code No.			Level	Orgn	Type	Payment	Amount	Amount
			Creating of petty cash fund
			Dr Petty cash fund
			Cr DTCO single account
			(Being- petty cash fund created ……..)
			Reimbursement (payment) of expenses
	xxxxx		Dr BE Expenses (by name)
	xxxxx		Dr BE Expenses (by name)
	xxxxx		Dr BE Expenses (by name)
	xxxxx		Dr BE Expenses (by name)
			Cr DTCO single account
			(Being- expenses paid from PCF)
			Closing of PCF (without expenses)
			Dr DTCO single account
			Cr Petty cash fund
			(Being-petty cash fund closed)
			Or
			Closing of PCF (with expenses)
	xxxxx		Dr BE Expenses (by name)
	xxxxx		Dr BE Expenses (by name)
			Dr DTCO single account (b/f)
			Cr Petty cash fund
			(Being-petty cash fund closed)

 

 

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Trial Balance & Adjusted Trial Balance	http://tiny.cc/c59jkz
Bank Reconciliation Statement (BRS)	http://tiny.cc/q59jkz
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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country 

PROBLEM: 5A

District Health Post, Syangja has the following information:

(a) 2078 Bhadra 4: Petty cash fund created in the responsibility of junior accountant Mr Thapa by Rs 1,000.

(b) 2078 Bhadra 30: Expenses made out of petty cash fund:

Bus fare	120	Stationery	200	Battery for wall clock	20
Mobile recharge card	100	Courier charge	150	Cock and Fanta	100

(c) 2070 Bhadra 30: Closing of petty cash fund

Required: Journal Vouchers

[Answer: Total expenses = Rs 690]

SOLUTION:

 

AGF No. 203

Central/Province/Local Level

Government of Nepal

District Health Post, Syangja

Date: 2078–05–4

Office Code No. 045

JV No. 1

Journal Voucher

Electronics Transaction No.

Types of Journal Voucher: Payment

Budget Sub-head No.

SN

Code

Activities

Particulars

LF

Sources

Debit

Credit

Sub-head

Program

Level

Bearer

Type

Payment

Amount

Amount

No.

Code No.

Orgn

mode

a

Dr Petty cash fund

1,000

Cr DTCO single account

1,000

Total

1,000

1,000

Amount in words: one thousand

Brief narration of transaction: petty cash fund created in the responsibility of junior accountant Mr Thapa

Attach documents:

 

 

(b) Expenses paid from the petty cash fund

Journal Vouchers

SN	BH No.	Program	Particulars	LF	Sources				Debit	Credit
		Code No.			Level	Orgn	Type	Payment	Amount	Amount
b	21612		Dr BE Bus fare (TA)						120
	22112		Dr BE Mobile recharge card						100
	22311		Dr BE Stationery						200
	22311		Dr BE Courier charge						150
	22211		Dr BE Battery for wall clock						20
	22711		Dr BE Cock and Fanta						100
			Cr DTCO single account							690
			(Being – expenses paid from petty cash fund)

 

 

(c) Closing of petty cash fund

Journal Vouchers

SN	BH No.	Program	Particulars	LF	Sources				Debit	Credit
		Code No.			Level	Orgn	Type	Payment	Amount	Amount
c			Dr DTCO single account						1,000
			Cr Petty cash fund							1,000
			(Being – petty cash fund closed)

 

#####

PROBLEMS  AND  ANSWERS  OF  PETTY  CASH  BOOK

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country 

PROBLEM: 5A

Rural Municipality Health Post, Syangja has following information:

Bhadra 4:   Petty cash fund created in the responsibility of junior accountant Ms Eliza by Rs 1,000.

Bhadra 28: Expenses made out of petty cash fund:

Taxi fare	Rs 200	Stationery purchase	Rs 150	Pepsi and Sprite	Rs 120
Wage paid	Rs 300	Repair expenses	Rs 100

Required: Journal Vouchers for creation and reimbursement

Total expenses = Rs 870]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country 

PROBLEM: 5B

District Health Post, Syangja has following information:

Poush 1:    Petty cash fund created in the responsibility of junior accountant Ms Srijana by Rs 1,000.

Poush 30: Petty cash fund is closed after following expenses:

Newspaper	Rs 300	Stationery purchase	Rs 90
Tea and coffee	Rs 200	Bus fare	Rs 120

Required: Journal Vouchers creation and closing

[Answer: Total expenses = Rs 710; DTCO Dr = Rs 290

 

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