Types of Petty Cash Books

Types of Petty Cash Books:- Following are the two types of Petty Cash Books:

1. Simple Petty Cash Book                               2. Analytical Petty Cash Book.


1. Simple Petty Cash Book: A Simple Petty Cash Book is identical with a Cash Book. Any cash which the Petty Cashier receives is recorded on the left hand side cash column (debit or receipts column) and any cash which he pays out is recorded on the right hand side (credit or payments column). The date and particulars of every transaction is written in the same date and particulars column. A specimen form of a Simple Petty Cash Book is given below:


Amount Received

Cash Book Folio



Voucher No.

Amount Paid

Amount Received



Heads of Expenses





2. Analytical Petty Cash Book: An Analytical Petty Cash Book has two sides; left hand side is used for recording receipts of cash (which will be only from the main cashier) and right hand side, which is used for recording payments. In the Analytical Petty Cash Book, a separate column is provided for recording a particular item of expenditure, i.e., postage, stationery, travelling, advertisement, etc. A column is usually provided for 'sundries' to record infrequent payments. When petty expense is recorded on the right hand side total payment column, same amount is also recorded in the appropriate expense column. At the end of a particular period, analysis (expenses) column are added and posted to the debit side of the respective accounts.

In an Analytical Petty Cash Book, petty expenses are classified into different heads of expenses. Each head of expense can be conveniently transferred to appropriate account head in the ledger. Thus, posting from Petty Cash Book becomes easy. While maintaining a Petty Cash Book, following points should be noted:

(i)                   The amount fixed for petty cash should be sufficient for the likely small payments for a relatively short period, say, for a week, a fortnight or a month.

(ii)                 Reimbursement should be made only when the Petty Cashier prepares a statement showing total payments supported by vouchers, i.e., documentary evidence and should be limited to the amount of actual disbursements.

(iii)                The vouchers should be filed in order.

(iv)                No payment should be made without proper authorisation.

(v)                 Petty Cashier should be allowed to make payment of expenses up to a specified limit. Beyond which, payment should be made by the main cashier.

(vi)                The Petty Cashier should be allowed to receive only the reimbursement.

 Balancing the Petty Cash Book:- A Petty Cash Book is balanced at the end of the month or a specified period. The columns for payments and expenses are totaled and the total equals the total in the `Total Payment Column'. Thereafter, the Petty Cash Book is balanced. The method of balancing the Petty Cash Book is the same as that of a Simple Cash Book.      

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