Hi everyone. What records should be kept of cash on hand as a proof of its amount? I mean for how much business has cash in its bank we use bank statement as a supporting document but for cash on hand what proof can be used to show HMRC if asked? Sorry if question is silly but I need to know. Thanks.
You use a petty cash system using the imprest system of restocking.
The float is normally no more than £150 which will be looked after by one specific member of staff.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thank you Shamus. Have here slightly different question - my client used to be a partnership and no they become a limited company. The equipment they used when they were partnership is has to be transferred now to their company - what double entry should I do to transfer this equipment? Thank you.
