What Is Fiddling Cash Fund Accounting

What is Petty cash fund?

What is Petty cash fund accounting

Meaning of little cash fund/What is Petty cash fund accounting

The novel accounting organization of his majesty government has given emphasis on banking transactions. All the receipts as well as payments of regime officeholder are made through banking venture however, practically, it may non locomote convenient to final result cheque for making modest expenditure similar Rs. ten for po

has given emphasis on banking transactions What is Petty cash fund accounting

phase stamps, Rs, 20 coolie charge, Rs.30 for coke, Rs, forty motorbus far etc. such expenditures are called little expenses. It is non possible to final result a cheque for these kinds of expenditure. Hence, to overcome this exceptional difficulty, the novel accounting organization has a provision to exercise a carve upward fund to run into the twenty-four hours to twenty-four hours little expenses. Influenza A virus subtype H5N1 fund is created past times providing the required cash to an employee of the office, who is called little cashier. Thus, all the little (small) expenses are paid through this fund as well as recorded inward little cash majority inward a format is designed past times AGF no. 22.

New accounting systems of NG, Nepal has made a provision of creating little cash fund of Rs. 200 to Rs. 500 every bit per the requirement of a office. This fund is established nether print organization as well as the little expenses are reimbursed periodically. The little cashier is given an amount equal to amount made out of little cash fund at the halt of each menstruation i.e. week, calendar month etc. the little cash fund volition convey the same amount equal to the master copy amount of previous period.
Note to locomote considered inward abide by of petty cash fund
• Petty cash fund must locomote maintained inward the format of AGF No. 22.
• Petty expenses are paid entirely out of little cash fund.
• Petty cash payment voucher must locomote used for every little payment.
• It may locomote created amongst an amount ranging Rs.200 to Rs.500 every bit per requirement of the regime office.
• The expenses of little cash fund are non posted to banking venture book.
• Advance payment cannot locomote made from it.
• At the halt of a for sure menstruation the little cash fund is reimbursed amongst the amount equal to the full little expenses made during the period.
Importance of little fund/ What is Petty cash fund accounting
Petty cash fund is which is created inward NG's purpose to pay little (small) expenses. The importance of it tin locomote summarized every bit follows:
• The payment of modest expenses from banking venture cash book.
• To carve upward little payments from banking venture cash book.
• To trim the utilization of cheque for modest expenses.
• To minimize toll as well as fourth dimension of issuing cheque for little payment.
• To facilitate the burden of principal accountant because a large set out of little expenses are recorded past times little cashier.
Forms used for operating little cash fund
The next types of forms are used for operating little cash fund.
• Cash payment sideslip (A.G.F. No.6)
• Cash payment sideslip as well as cash command shape (AGF. No.7)
• Petty cash majority or little cash fund concern human relationship (AFG No.22)
• Requisition shape for the reimbursement of cash payment (AGF No.6A)
Cash payments sideslip (AGF No.6)
Cash payment sideslip is a primary majority used inward the administration of little cash fund. It is prepared to brand systematic tape of the payment of cash out of little cash fund. This sideslip is designed nether the auditor general's purpose (A.G.F. No. 6). It includes the amount paid. The mention of the receiver as well as other necessary details near the payment. Influenza A virus subtype H5N1 full general specimen of a cash sideslip is given below:
Cash payment slips as well as cash command shape (AGF. No. 7)
Cash payment slip as well as cash command shape is used to cheque the misuse of cash payment sideslip used for making payment from little cash fund. The leafage of cash payment sideslip is pre-numbered as well as it is used to little cashier, who is responsible to handgrip the little cash fund. The get-go or ending set out of cash payment sideslip is recorded inward this form. This shape is maintained inward a format every bit designed past times AGF No. 7.
Petty cash majority as well as little cash fund concern human relationship (AGF. No. 22)
Petty cash majority is a main subsidiary book. This is maintained past times little ashier to tape the little expenses of regime operating degree officeholder inward it on dissimilar heads. This fund is maintained inward a format every bit designed past times AGF No.22. it has major vii column. The amount received from main cashier is recorded on the debt column as well as the little expenses are recorded on the credit slide chronologically.
Requisition shape for the reimbursement of cash payment (AGF No. vi (a))
According to the regulation of implores organization of little cash fund. The payment of little expenses, which are made out of little fund should locomote reimbursed, nether this, the little cashier should prepared a form, which is known every bit requisition shape the reimbursement of cash payment. The shape is designed past times AGF No. vi (A) as well as submitted to the caput cashier/accountant for reimbursement of little cash fund. The specimen of this shape is given below.

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