A simple petty cash book is just like the main cash book. Cash received by the petty cashier is recorded on the debit side, and all payments for petty expenses are recorded on the credit side in one column.
What are the advantages of using analytical petty cash book?
Advantages of Petty cash book:
- Simple method: Recording of transactions in a petty cash book is easy.
- Time saving: Recording in petty cash book dsaves time and efforts of teh chief cashier.
- Efficient control: At teh end of a period, Petty cash book is audited by the main cashier, so frauds and errors are less probable.
What is the purpose of preparing an Analysed petty cash book?
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 imprest system of petty cash book?
An imprest system of petty cash means that the general ledger account Petty Cash will remain dormant at a constant amount. As long as $100 is adequate for the organization’s small disbursements, then the general ledger account Petty Cash will never be debited or credited again.
How do you prepare an analytical petty cash book?
It is maintains just like the cash book. Money received from head cashier is recorded on debit side and payments are recorded on credit side. It is also called as analytical petty cash book, as it analysis the payments under different heads separately. Generally petty cash book is maintained on Imprest system.
What are the features of petty cash book?
Key Features of the Petty Cash Book
- A petty cash book has a debit and a credit side to show the incomings and cash outgoings from the petty cash account.
- Just like a normal cash book, a petty cash book is periodically maintained across a month.
What is petty cash example?
Petty cash is a small amount of cash that is kept on the company premises to pay for minor cash needs. Examples of these payments are office supplies, cards, flowers, and so forth. A separate accounting system is used to track petty cash transactions.
What’s the difference between petty cash book and analytical cash book?
An analytical petty cash book, on the other hand, is a cashbook which contains only one amount column on the receipt side and a number of different columns on the payment side for the head of expenses. It is called analytical cash book because it analyses the expenses into a number of grouped expenses.
Which is the payment column in a petty cash book?
And the payment column of a simple petty cash book records petty expenses. An analytical petty cash book, on the other hand, is a cashbook which contains only one amount column on the receipt side and a number of different columns on the payment side for the head of expenses.
How to create a petty cash book in Excel?
Petty cash book format in excel A petty cash book can either be a simple petty cash book or an analytical petty cash book. The simple petty cash book has only two amount columns: receipt and payment. The receipt column is used to record the opening balance and the amount received from the head cashier.
How is petty cash book maintained in imprest system?
Generally petty cash book is maintained on Imprest system. Under this system management estimates the expenditure roughly for a period of week or month. Head cashier will give the petty cashier the estimated amount to start with. Petty cashier makes payment & records the transactions in the petty cash book.
