QUESTIONS
1. Explain thedefinition of petty cash fund according to three
experts and conclude the definition!
2. Explain the characteristics of petty cash fund!
3. Explain the purpose of establishing petty cash!
4. Mention the supporting documents for petty cash fund and
explain the function of each document!
4.
1. Definition ofPetty Cash Fund
According to three experts:
- Soemarso: Petty cash is a certain amount of cash that is intentionally set
aside by a company to finance specific expenses.
- Agoes: Cash is a company's liquid asset that is attractive and easily
embezzled, implying that petty cash is a small portion of this liquid asset.
- Zaki Bridwan: Petty cash fund is cash that is managed to pay for
expenses that are relatively small in amount and not economical to pay
by check.
ANSWER
1
5.
CONCLUSION
PETTY CASH FUNDIS A SMALL
AMOUNT OF CASH SET ASIDE BY A
COMPANY TO PAY FOR MINOR
EXPENSES THAT ARE NOT
ECONOMICAL TO PAY THROUGH
REGULAR PAYMENT PROCEDURES.
6.
2 Characteristics:
-Small amount:The amount of petty cash is limited according to daily
or weekly needs, used for minor expenses such as buying stationery,
postage, or meeting snacks.
-Used for routine and unexpected expenses: It is intended for urgent
payments that cannot be delayed, such as parking fees, buying drinks,
or photocopying costs.
-Managed by a special officer (Petty Cashier): Usually, there is one
person responsible, called the petty cash officer, who stores, records,
and reports the use of the fund.
7.
BENEFITS:
● Financing smalland routine expenses: To pay for daily expenses that are
small in amount and urgent, such as buying stationery, postage, parking
fees, or meeting snacks.
●Speeding up payment process: Small expenses can be paid directly in
cash without waiting for long approval processes, providing ready-to-use
cash for urgent needs.
●Increasing administrative efficiency: Avoiding complicated processes if
small expenses have to go through official procedures such as making
checks or bank transfers.
●Helping to smooth daily operations: Ensuring that office operations are
not hindered by small needs that cannot be paid directly.
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8.
DOCUMENTS:
● Petty CashVoucher (PCV), Function: As the primary document to
record petty cash expenses, used by the petty cash officer to
request reimbursement for specific purchases or payments.
● Receipt/Invoice, Function: Becomes physical evidence of cash
transactions for goods or services, attached to the PCV as valid
proof of expenses.
● Cash Outflow Slip, Function: Records every cash outflow from
petty cash, showing the date, amount, and purpose of the expense.
● Petty Cash Replenishment Request, Function: Used when the
petty cash fund is almost depleted, attached with a recap of PCVs
and expense receipts.
● Petty Cash Recap, Function: A summary of all petty cash
expenses during a certain period, used to facilitate reconciliation
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