Besides maintaining a main or general cash book, many companies also maintain a small cash book known as petty cash book to record small day to day expenditures of the business. The person responsible for spending petty cash and recording it in a petty cash book is known as petty cashier.
What are the types of petty cash?
Generally, there are two types of Petty Cash Book:
- Columnar Petty Cash Book.
- Imprest Petty Cash Book.
How many types of petty cash book are there?
two types
Generally, there are two types of Petty Cash Book: Columnar Petty Cash Book. Imprest Petty Cash Book.Who keeps the petty cash book?
petty cashier
A petty cash book is created to facilitate small payments in a business or organization. It caters for items such as postage and stamps, bus fare and stationery. It is meant to meet the day-to-day expenses and is entrusted in the hands of a petty cashier.What is cash float?
Cash float is the term for the total amount of checks in between the time when the check is written and taken off the books of the payer, but not out of their bank account, and before it’s in the back account of the payee, even though they already would have recorded it in their books.
Which is an example of a petty cash book?
Petty Cash Book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc. These are expenses which are incurred day after day; usually, petty expenses are large in quantity but insignificant in value.
How to post from petty cash book to Ledger?
Posting the from Petty Cash Book to Ledger: Step 1: For posting of items of petty cash book, all heads of petty cash book are totaled periodically, say monthly. Step 2: Then, total of individual heads of the petty cash book are posted to the debit side of respective ledger account by writing the words ‘To Petty Cash A/c’. Step 3:
Who is responsible for spending the petty cash?
The person responsible for spending petty cash and recording it in a petty cash book is known as petty cashier.
What does clerk do with petty cash book?
The petty cash clerk also turns in a copy of his or her petty cash book to the general ledger accountant or cashier, who creates a journal entry to record how the cash in the petty cash drawer was used.
