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Petty cash book

A petty cash book records small cash payments, often under an imprest system that restores the float to an agreed amount. Under imprest, count the cash remaining and add supported payments; together they should equal the established float. Reimbursement restores the float and the analysed payments are posted to the appropriate expense accounts, with any eligible tax treated separately. A shortage or excess discovered on reconciliation requires investigation and an appropriate entry.

Worked example

A 100 float with 30 of valid payments is replenished by 30.

Common mistake

Reconcile cash plus vouchers to the float; petty cash is not the main bank account.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA F1 Direct July 2027–August 2028
ACCA FA Direct September 2026–June 2027
ACCA K1 Direct July 2027–August 2028
CIMA BA3 Direct Official assessment-window verification pending
FIA FFA Direct September 2026–June 2027

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