Senin, 03 Juli 2017

What is Petty Cash?

Petty cash is cash that is used to pay routine expenses and in a small amount for operating activity in a company. When the petty cash in minimum level, petty cash needs a refill. Petty cash has two recording methods, they are Imprest Fund System and Fluctuation Fund System.

Imprest Fund System is method for recording refill of petty cash that is used when petty cash in company is constant. If a company uses imprest fund system, there’s no journal when company refill the petty cash.

Meanwhile, Fluctuation Fund Sysytem is method for recording refill of petty cash that is used when petty cash in company isn’t constant, but accordance with the expense. If a company uses imprest fund system, there’s a journal when company refill the petty cash.

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