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
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| 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 |
