The petty cash book is the record of petty cash expenditures that are sorted by date. In most cases, this petty cash book is a ledger book, and not a computer record.
What is petty cash book and how it is prepared?
Petty Cash is prepared just like a simple cash book having the debit and credit sides. Amount received from the head cashier is recorded on the debit side, whereas the payments are recorded on the credit side. Petty Cash Book is prepared to make a record of petty expenses.
How do I track petty cash?
How to Keep Track of Petty Cash
- Step #1 – Purchase a Lock Box.
- Step #2 – Assign Responsibility.
- Step #3 – Store the Petty Cash Box and Set a Limit.
- Step #3 – Deposit Cash into the Petty Fund.
- Step #5 – Create a Transaction Log.
- Step #6 – Track the Petty Cash Fund on the Accounting Records of Your Business.
What is another term for petty cash?
In this page you can discover 7 synonyms, antonyms, idiomatic expressions, and related words for petty-cash, like: kitty, made money, pin-money, pocket-money, pool, fund and spending-money.
What is the purpose of a petty cash book?
What is 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.
What are the two types of petty cash?
Thus, the book is part of a manual record-keeping system. There are two primary types of entries in the petty cash book, which are a debit to record cash received by the petty cash clerk (usually in a single block of cash at infrequent intervals), and a large number of credits to reflect cash withdrawals from the petty cash fund.
Where are small expenses recorded in petty cash?
Such small items of expenses are usually recorded in the petty cash book that is designed specifically for this purpose. Other expenditure incurring larger amounts of money is recorded in the cash book and this is dealt with in Unit M3 (Chapters 6-7). THE PETTY CASH PROCEDURE
How is a debit balance recorded in a petty cash book?
This balance is always a debit balance. Therefore the primary book wherein the money received from the head cashier and the amount of expenditure for a particular period of an organization are recorded in chronological order of dates in separate money columns of both sides, is called columnar petty cash book.
