Cash handling

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Cash handling

  1. 1. Cash Handling
  2. 2. <ul><li>In most of the organizations, most of the financial transactions are done by cheques, but in certain cases, readily available cash has to be handled. </li></ul>
  3. 3. An Example <ul><li>For example, for an office meeting your refreshments charges are Rs. 400. Now the Canteen boy, would not wait for a month to be issued a cheque for this purpose. You have to pay him through the petty cash. </li></ul>
  4. 4. <ul><li>In Health sector, many organizations keep petty cash in a locker with them and maintain it through petty cash registers. The amount of petty cash depends on the natures of daily petty transactions. </li></ul>
  5. 5. <ul><li>For example if you have a refreshment bill of Rs. 400, you pay the canteen boy Rs. 400 cash from the petty cash and write down the amount in the Cash Register, while maintaining the receipt in the Petty cash File/ register. The petty cash limit should always equal the net cash available at any time plus, the amount of the receipts. At the end of the month, all such receipts are sent to the Accounts Office, which issues a cheque against them, which is encashed and the cash stored in the cash locker. </li></ul>
  6. 6. While Handling Cash Always Ensure that….. <ul><li>Cash must be stored in a secure locker. </li></ul><ul><li>A Petty Cash register must be maintained and daily checked for accuracies. </li></ul><ul><li>Huge transactions should never be made from Petty Cash </li></ul><ul><li>Preferably Petty Cash limits should not exceed the salary of the person who is the custodian of the locker. </li></ul>

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