Which document is used to reflect payments from the petty cash fund?

Which document is used to reflect payments from the petty cash fund?

• A. Petty cash voucher
• B. Bank transfer form
• C. Invoice
• D. Credit note

Answer: (A)

When a petty cash fund is used for small payments, you need a straightforward record that captures each outlay. A petty cash voucher does this by noting the date, amount, who was paid, and what the payment was for. This voucher provides the evidence needed to reconcile the petty cash balance and to post the correct expense in the accounts. A bank transfer form isn’t used to record individual petty cash payments, as it documents moving money between bank accounts rather than detailing small cash disbursements. An invoice is a bill from a supplier for goods or services and doesn’t reflect a cash outlay from petty cash. A credit note is an adjustment from a supplier and also doesn’t record petty cash payments.

When a petty cash fund is used for small payments, you need a straightforward record that captures each outlay. A petty cash voucher does this by noting the date, amount, who was paid, and what the payment was for. This voucher provides the evidence needed to reconcile the petty cash balance and to post the correct expense in the accounts.

A bank transfer form isn’t used to record individual petty cash payments, as it documents moving money between bank accounts rather than detailing small cash disbursements. An invoice is a bill from a supplier for goods or services and doesn’t reflect a cash outlay from petty cash. A credit note is an adjustment from a supplier and also doesn’t record petty cash payments.