UK Accounting Glossary
A small amount of cash withdrawn from the bank used to buy miscellaneous items, e.g. stationary, stamps, milk, etc.
Petty cash is a small amount of discretionary funds in the form of cash used for expenditures where it is not sensible to make any disbursement by cheque, because of the inconvenience and costs of writing, signing, and then cashing the cheque.
I took the money out of the petty cash and paid him his wages.
Keeping some petty cash in the office will make it quicker and easier to buy day-to-day items for your business.
If you need to buy a small gift for your client’s birthday, just take the money out of petty cash.
Human Resources had to remind the employees that with the exception of petty cash, money is not to be kept on company premises.
You can take it from petty cash, provided you replace it tomorrow morning.
The use of petty cash needs to be more closely monitored.
These new travel cards are intended to help replace petty cash and will assist the company in managing travel expenses more effectively.
Police in Birmingham are warning retailers to stop leaving petty cash in their stores overnight- following a series of burglaries targeting businesses in the town centre.
There’s currently an ongoing investigation into the disappearance of petty cash from the Council’s Planning Office.
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This glossary post was last updated: 26th December 2018.