FINANCIAL ADMINISTRATION

Assignment 1 – Petty Cash

Petty cash is a monetary system that contains a set monthly amount that businesses
can use to purchase small and/or incidental items (e.g. stationery, coffee, stamps,
cleaning supplies etc.).

Upon completion of this assignment, you will be able to:

 Conduct petty cash transactions.

 Perform petty cash reconciliation.
 Complete a petty cash book.

Scenario:

The manager at Plum Real Estate Agents wants to set up an Imprest system of petty
cash for $200.00; you are acting as petty cashier, you have just replaced Jim Hurst.

Instructions:

You are creating a petty cash system using $200.00 cash, by issuing an advance
cheque dated for February 1, 2019. This will ensure you have the Imprest amount
required for the month of February. Attached are the documents relating to the Petty
Cash transactions for the month of February 2019. Record the month’s transactions,
reconcile the petty cash book and reimburse the petty cash fund.

Complete the following Sections:

1. Complete an advance cheque for $200.00 and a bills and coins order form.

2. Record the transactions from the petty cash vouchers (in the pages to follow) in the
petty cash book. It is important you check the amounts to ensure they are correct.

3. Total the petty cash transactions for the month of February 2019.

4. Reconcile the petty cash book to the cash on hand in the petty cash box.

5. Complete a reimbursement request form and a reimbursement cheque to bring the

petty cash box amount back up to the Imprest amount of $200.00. Also, complete
the bills and coins order form.

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Figure 1. Advance Cheque Template.

02/01/2019

Plum Real Estate Agents 200.00

Two-hundred dollars--------------------------------------------------------
--

Advanced cheque Brittany Godden

Figure 2. Coins Order Form. For individual coin requests, use the first part of the form,
and to order rolls, use the second section which shows the total amount per roll in
brackets.

Coins
Amount Rolls Each Total
(total per roll)
0.05
0.10
0.25
1.00
2.00
0.05 (2.00)
0.10 (5.00)
0.25 (10.00)
1.00 (25.00) 1 25.00
2.00 (50.00) 1 50.00

($75 in coins)

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Figure 3. Bills Order Form.

Bills
Amount Each Total

5.00 1 5.00
10.00
20.00 1 20.00
50.00 1 50.00
100.00
($75 in bills)

Figure 4. Petty Cash Transaction Vouchers.

09/Feb/19

HST

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10/Feb/19

HST

17/Feb/19

HST

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19/Feb/19

HST

24/Feb/19

HST

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29/Feb/19

HST

31/Feb/19

HST

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Plum Real Estate Petty Cash Journal

An Excel template of the Petty Cash Book (Journal) has been supplied separately (which is a slightly
different format), if you prefer to use a spreadsheet instead.

Date Opening Cash Cash Expenditure Expense Balance

Balance Out In Amount
200.00 12.00 188.00 61222 Postage 12.00 188.00
09/Feb/19
10/Feb/19 23.00 177.00 61221 Stationary 23.00 165.00

16.50 183.50 61222 Postage 16.50 148.50

17/Feb/19
19/Feb19 9.60 190.40 61223 Staff amenities 9.60 138.90

24/Feb/19 25.30 174.70 61224 Office 25.30 113.60

expenses
29/Feb/19 5.40 194.60 61224 Office 5.40 108.20
expenses
31/Feb/19 50.00 150.00 61222 Postage 50.00 58.20

Month End
Reconciliation Closing
Cash
Amount
Balance 58.20

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Figure 5. Reimbursement Request Form.

Date: March 1,
2019
Custodian Name: Brittany Godden
Plum Real Estate
Department: Agents, Sales
Department (Toronto)
Description of Account
Date Expense Office Department Number Amount
Replenish petty cash
Feb 2019 101 2602 11000 141.80
float

Requested by Total Petty Cash

Brittany Godden $141.80
(print name): Required:
Manager
Approval: Cash on Hand: $58.20
(signature)
Total Petty Cash
Reviewed by: $200.00
Float:

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Figure 6. Reimbursement Cheque.

1939

May 27, 2019

Petty Cash 141.80

One-hundred forty one dollars and eighty cents

Reimbursement Cheque Brittany Godden

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Figure 7. Coins Order Form.

For individual coin requests, use the first part of the form, and to order rolls, use the
second section.

Coins
Amount Rolls Each Total
(total per roll)
0.05 1 0.05
0.10
0.25 3 0.75
1.00 1 1.00
2.00
0.05 (2.00)
0.10 (5.00)
0.25 (10.00)
1.00 (25.00)
2.00 (50.00)

Figure 8. Bills Order Form.

Bills
Amount Each Total

5.00
10.00
20.00 1 40.00
50.00
100.00 1 100.00

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Figure 9. Chart of Accounts.

Office Office Department

Location Code Department Code
Toronto 101 Sales 2300
Montreal 102 Marketing 2301
Vancouver 103 Finance 2602
Calgary 104 Facilities 2632

Type of Expense Account

Number
Accommodations/Meals 61220
Stationery 61221
Postage and Mail Fees 61222
Staff Amenities 61223
Office Expenses 61224
Travel (Plane, Car, Bus) 61555
Honorariums 62000
Promotions 71250
Program Development 71149
Professional
Development 71150
Membership & Dues 71425
Telecommunication 72010
Other/Miscellaneous 71110

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