Aqid ERPA float, what is spent from it, and the top-up
A petty cash book (سجل العهدة النقدية، النثريات) records the small cash one custodian holds for the office's minor expenses: the opening float, every payment with its receipt, and the replenishment that brings the cash back to the float. Under the imprest method the float is a fixed amount and the custodian is topped up by exactly what was spent, so at any moment the cash in hand plus the period's receipts equal the float.
- A number, the period, the custodian's name and the opening float.
- Per line: date, voucher number, description and category.
- The VAT included in the payment, where there is a tax invoice in the company's name.
- Received and paid columns, and the running balance after each line.
- The custodian's signature and the approver's.
The sample month
A float of 2,000.00. Five payments come to 739.50; four have tax invoices, with 91.50 of VAT among them, and the taxi has none, so no VAT is recorded for it. On the 16th a bank transfer of 739.50 replenishes the box, and the balance is back at the float.
| Opening float | 2,000.00 |
|---|---|
| Payments PC-001 to PC-005 | −739.50 |
| Balance before the top-up | 1,260.50 |
| Replenishment TR-0044 | +739.50 |
| Closing balance = the float | 2,000.00 |
What the books do with it
Each payment is an expense in its category against the petty cash account, with the VAT of a tax invoice in the company's name taken to input VAT. The replenishment is money moved between two of the company's own accounts, bank to petty cash. Count the cash at every replenishment and at the month end, so a shortage is found while the receipts are still fresh.