To understand this topic one must already know how to work out the financial transactions into the double entry system, how to open the ledger accounts and balance off the accounts. The first slides of the PowerPoint presentation help you to understand why the Petty Cashbook exists, who is responsible for the petty cashbook and the importance of the Imprest System. An imprest system requires that a fixed amount called the cashfloat will be reserved, which after a certain period of time usually every month, the money spent will be re-imbursed from the bank account of the business in order for the cashfloat to be restored.
The other slides will show the format which is used to draw up a Petty Cashbook and there is also a worked example showing step by step how the expenses are entered into the analysis columns. At the end of the month the totals will be casted, the money spent will be re-imbursed while the totals of the analysis columns will be transferred to their accounts using the double entry system. Finally the Petty Cashbook is balanced, the new balance brought down will reflect the cashfloat (fixed amount) at the beginning of the previous period.
The last slide will show some advantages that the Petty Cashbooks offers to its users.