Types of Petty Cash Books:- Following are the two types of Petty Cash Books:
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:
SIMPLE PETTY CASH BOOK
Cash Book Folio
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.
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
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.
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
The vouchers should be filed in order.
No payment should be made without proper authorisation.
Petty Cashier should be allowed to make payment of expenses
up to a specified limit. Beyond which, payment should be made by the main
The Petty Cashier should be allowed to receive only the
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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