Petty cash voucher definition
/What is a Petty Cash Voucher?
A petty cash voucher is a standard form used as a receipt whenever cash is withdrawn from a petty cash box. The voucher is typically purchased from an office supply store. It is a physically small form, since it must fit within the petty cash box or drawer. It is classified as a source document, since it is an original document that contains the details of a business transaction. Source documents are critical to auditors, who use them as evidence that recorded transactions actually occurred.
How to Use a Petty Cash Voucher
The petty cash voucher is an important form of evidence for reconciling the remaining cash in the petty cash box. At the beginning of an accounting period, there should be a certain amount of cash in the box and no vouchers (which should have been removed as part of the month-end entry for the preceding month). Then, as cash is disbursed from the petty cash box, the vouchers are essentially swapped for cash. Thus, at the end of the month, the total amount in the petty cash box should still equal the balance at the beginning of the month - except that now the total is comprised of both cash and vouchers. If there is a difference between the beginning and ending figures, then it is likely that cash was removed without any voucher documentation, or else that the amount on a voucher was incorrectly stated.
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Accounting for Petty Cash Vouchers
At month-end, the information in the vouchers is compiled to create a journal entry to credit the petty cash account and debit a variety of expense accounts (depending upon the uses to which the cash was put). The vouchers are attached to the journal entry as evidence of the underlying transactions.
Information on a Petty Cash Voucher
A petty cash voucher typically includes the following line items:
Voucher number. A unique identifier for tracking the voucher.
Date. The date when the petty cash expense was incurred.
Payee. The name of the person or business receiving the payment.
Amount. The total amount of cash disbursed.
Purpose/description. A brief explanation of the expense.
Account code. The accounting category or code for the expense.
Approved by. The signature of the authorized person approving the expense.
Received by. The signature of the person receiving the cash.
Supporting documents. Any attached receipts or invoices for verification.
These details help ensure accountability and accurate tracking of petty cash expenditures.
Terms Similar to Petty Cash Voucher
The petty cash voucher is also known as the petty cash receipt.