PNDBF – Receipts and Payments. Lim Sei Kee @ cK. Introduction. Think about the items you normally buy with your pocket money, eg . Refreshments, stationery or reading materials. Do you keep the receipts for these items?.
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Lim SeiKee @ cK
Companies make payments or reimburse staff for office expenses like stationery, transport, postage and other miscellaneous items.
Besides petty cash payments, there are other methods of payment made by an office, such as through bank transfer or by cheque.
Petty cash is used to make payments to staff for small office expenses such as foodstuff for the office pantry, transport fees or common stationery items.
A system of control is necessary to prevent the misuse of the money set aside for petty cash.
The petty cashier is responsible for the safekeeping of petty cash.
A) Staff members who have petty cash claims must fill in a Petty Cash Voucher, stating the amount of money spent, the date of expenditure and the reason for the expenditure.
PETTY CASH VOUCHER
NO __1_____ DATE _09.07.2012___
PAY AWG SHAHRAN BIN AWG DAMIT_______
DOLLARS FIVE DOLLARS ONLY____
BEING PAYMENT OF EASI CARD______
_________ __________ __________
Prepared by Authorized by Payment received by
B) The receipt, a slip of paper indicating the details of the expenditure, must be attached to the Petty Cash Voucher.
The petty cashier must ensure that the amount on the receipt matches the amount written on the Petty Cash Voucher.
c) The petty cashier makes sure that the Accountant or the Accounts Manager signs and authorizes all the claims. The person receiving payment also signs on the voucher.
Therefore, the voucher is an important record of payment, especially when a receipt is unavailable.
D) All Petty Cash Vouchers and receipts are to be kept for recording purposes.
The petty cashier is the only person responsible for the records.
From time to time, the Accountant or Accounts Manager will also check the petty cash records and count the petty cash to prevent any mistakes or acts of dishonesty.
At the beginning of a period, eg. the week, the petty cashier receives a fixed sum of money. This is called the imprestOR float.
Next, the petty cashier will make payments for expenses from the imprest. These payments must be correctly recorded in a Petty Cash Book.
The expenses must be totalled and the balance worked out at the end of the period. The chief cashier will then reimburse the petty cashier the total sum of money paid out from the petty cash. This will bring the imprest back to its original amount.
We have looked at how an office handles small, internal payments. What happens when the office needs to make a payment to other local or overseas organizations? Depending on the amount and the nature of the business transaction, the office may make payment in the following ways.
A cheque that allows cash to be drawn over the bank counter is called a cash cheque. It bears the word ‘Cash’ instead of the payee’s name. The word ‘Bearer’ is not cancelled. This means that if a cash cheque is lost, anyone who finds it can obtain cash over the bank counter.
A cheque with crossings on it is called a crossed cheque. ‘A/C Payee Only/ Not Negotiable’ is an example of a crossing marked on the front of a crossed cheque. The word ‘Bearer’ is cancelled. This means that only the payee can cash the cheque as the amount is credited to his or her account. If you are sending a cheque by post, cross it to safeguard against theft.
A post-dated cheque is one that is dated later than it is written. This type of cheque can only be cashed on or after the date shown on the cheque.
@ Use a pen. In this way, details cannot be erased easily.
@ Write the current date unless it is a post-dated cheque.
@ Write the payee’s name and the amount to be paid correctly.
@ Sign the cheque. Otherwise, the cheque cannot be processed.