Pleases Suggest Different Rules For Internal Check Over Petty Cash?

The management can determine the minimum amount for making payment through petty cash fund. All amounts in excess of this limit must be paid through cheques by the accountant. The petty cash balance should be maintained under inprest system. The amount used in replenished every month to the petty cashier so as to maintain the fund. The management can determine the amount of petty expense for one month. Every month same amount of petty cash is handed over to petty cashier for meeting the daily expenses.


The petty cashier must receive the every payment through petty cash fund. These vochers include cash memo, bill, ticket or other receipt which show the nature of transaction of a business. The vouchers must be numbered by the petty cashier. The vouchers must be filed according to their serial numbers. These numbers are essential for record and future reference. The cashier can check the amount of petty cash in hand and amount spent so far. The vouchers can be compared with payments. The vouchers must be in the name of business concern.

The responsibility lies in the head of petty cashier. The management can ask the employees to borrow from petty cashier. In case of emergency other arrangements can be made but petty cash balance must be used for petty expense.