Petty cash is stored in a petty cash drawer or box near where it is most needed. In almost all businesses, it is found necessary to keep small sums of. How the imprest system of petty cash book works your business. Large businesses maintain petty cash book to reduce the burden of main cash book. Download petty cash book excel template petty cash book is a readytouse excel template to systematically record and manage your petty or small daily routine payments. A petty cash is a cash book used to enter all small or petty expenses obtained. Guildhall account pad 8 summary column 298mm x 210mm 60 sheet punched 1589. The advantages of analytical petty cash book is given below. Subsidiary ledgers are often maintained to facilitate a division of responsibilities within a large account, or to provide a separate record of a particular account. The petty cash book will be maintained by a separate cashier known as petty cashier in the accounting field. A petty cash log is a document to record all the important financial information. Petty cash book can be maintained either in a simple or in analytical way. Tips keep the petty cash book and box or tin in a safe place, such as the accountants or managers office or cubicle. Petty cash is a small amount of discretionary funds in the form of cash used for expenditures where it is not sensible to make any disbursement by cheque, because of the inconvenience and costs of writing, signing, and then cashing the cheque the most common way of accounting for petty cash expenditures is to use the imprest system.
Petty cash is a small amount of cash that a business has on. Totals are carried forward from page to page until the end of the periods. The analytical cash book is a book kept by a petty cashier. Petty cash book definition of petty cash book by the. Adams 2 part petty cash receipt book 5 12 x 11 book of 200. Petty cash is often used to pay for postage, small office supplies, and other small purchases. Lecture 5 the analytical petty cash book and the imprest system every business has a number of transactions of very small value which, were they all recorded in the cash book, would only serve to make it more difficult to identify the important transactions that businesses need to keep a close eye upon. Meaning of petty cash book, its importance and advantages. Since the petty cash book analysis the expenses into a number of heads of expenses, the name given to it is analytical petty cash book. Most cash should be deposited right away in the bank, but a small amount can be kept on hand in a petty cash account earmarked for minor. When creating a petty cash account, be sure to document the origin of the cash you use to start with, and also keep a petty cash book to track your every petty cash purchases. In a business operating this type of cash book, small cash payments are usually made out of petty cash. Petty cash is a small amount of discretionary funds in the form of cash used for expenditures where it is not sensible to make any disbursement by cheque.
Petty cash book a petty cash book is shown on the next page. There are two primary types of entries in the petty cash book, which are a debit to record cash received. Subtract the total onhand cash from the opening balance. A general ledger, however, comprises all accounts necessary for the compilation of the finance statements required by the. While recording the transactions in petty cash book if all the expenses are analyzed and entries are recorded in cash book on the basis of this. Columnar or analytical petty cash book with problem hindi the commerce tutor. The petty cash voucher details are then entered in the petty cash book and the voucher filed away in numerical order so that it may be easily located if necessary. Petty cashier is a person, who maintains the petty cash book. It is another cash book which is maintained, generally, in large business concerns to reduce the burden of main cash book, in which numerous transactions involving petty small amounts are recorded. Ordinary system imprest system in this system petty cashier is given appropriate amount of cash after spending the whole of that amount the submits the account to the head cashier this is the system of paying advance in the beginning. For this purpose, a petty cashier is appointed by the chief cashier. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and. Columnar or analytical petty cash book with problem hindi. The main advantages of petty cash book publish your article.
Analytical petty cash book an analytical petty cash book is one in which there is one amount column in its debit side and a number of columns on its credit side for different heads of expenses. Jul 02, 2018 in this video we will discuss what is petty cash book a subsidiary books in hindi for class 11th cbse icse and state boards and what are the different types of petty cash book i. After using petty cash book, l can check whether there are extravagant expenses. Adams petty cash 2part carbonless receipts book, 2. The credit side consists of several analysis columns. The petty cash book is ruled in the form of the single column cash book with an amount column and addition oat columns for the more usual classes of expenditure. The keeping of the book is not different from the keeping of the main cash book.
In this video we will discuss what is petty cash book a subsidiary books in hindi for class 11th cbse icse and state boards and what are the different types of petty cash book i. Ppt petty cash book powerpoint presentation free to. Petty cash book and types of petty cash book part 1 simple. How to set up and maintain a petty cash account basic. How the imprest system of petty cash book works your. Just as in the main cash book, all payments are credited in the petty. This is the only amount of cash that is not immediately deposited in the bank account after it is received.
Petty cash has its own asset account and is reconciled at the end of every period. Petty cash book is maintained by the petty cashier. Receipts are recorded on the debit the left hand side, and payments are recorded on the credit right hand side. It is easy to set up and will save you from writing a lot of small checks or using your personal funds. Thus, the book is part of a manual recordkeeping system. They have used the cash that has been built up to purchase assets in distress. A company typically uses petty cash to make small purchases or reimburse employees for minor expenditures. If my petty cash book has overdraft, then l will note more about my expenses. Petty cash or the petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check. Total the receipts that detail petty cash expenditures.
Importance and advantages of petty cash book business performing a large number of petty transactions usually maintain a separate petty cash book. In order to put money into the petty cash account, money has to be taken out of the business checking account. The initial fund would be created by issuing a cheque for. While recording the transactions in petty cash book if all the expenses are analyzed and entries are recorded in cash book on the basis of this analysis such petty cash book is called analytical petty cash book. The additional analysis columns are used to analyze expenditures as they arise. Imprest system of petty cash is a system where the petty cashier is given a lump sum in cash often called a float keeping in view the possible needs of the business to meet its petty expenses for a stated period, e. Each month, accountants or other employees will need to balance petty cash and replenish the funds. Pack of 5 guildhall 127 x 102mm petty cash voucher pads in white 1569. A petty cash voucher is usually a small form that is used to document a disbursement payment from a petty cash fund. These small cash payments are recorded in a separate book, known as a petty cash book. Download petty cash book excel template exceldatapro.
Petty cash book and types of petty cash book part 1 simple, analytical for class11th in hindi duration. Examples of these payments are office supplies, cards, flowers, and so forth. Add guildhall white petty cash voucher pads 100 leaves pack of 5 1569 to basket. Petty cashier meaning in the cambridge english dictionary. Since the petty cash book analysis the expenses into a number of heads of. Write the normal petty cash figure on a sheet of paper. A petty cashier makes a detailed analysis of petty payments and records under suitable heads, i. Petty cash vouchers are also referred to as petty cash receipts and can be purchased from office supply stores the petty cash voucher should provide space for the following. Petty cash is the small amount of cash that is kept on hand by a company to pay for minor, inexpensive purchases during the normal course of operations. Apr 26, 2020 the petty cash book is a formal summarization of petty cash expenditures, sorted by date. The petty cash book is a formal summarization of petty cash expenditures, sorted by date. As head cashier checks the accounts of previous month and gives advance for the coming month, thus, errors if any are reduced. Petty cash is a small amount of discretionary funds in the form of cash used for expenditures where it is not sensible to make any disbursement by cheque, because of the inconvenience and costs of writing, signing, and then cashing the cheque. The advantages of analytical petty cash book is given below i.
In the analytical version, a separate column is used for. The amount paid out by the chief cashier is credited in his cash book to complete the double entry. Analytical petty cash book in big business apprehensions, the petty cash book is maintained in analytical form, with a detached column for each standard. The maintenance of petty cash book does not require specialised knowledge of accounting. C or cb cash book, j journal, pc petty cash book etc. The petty cash fund is an accounting tool that helps you to manage and track small purchases that are not appropriate to make a check payment or using your credit card. Save on printer ink and toner to keep your office efficient and productive. In module 12, which covered the bank cash book, the advantages of paying all cash and cheques into the bank intact were evident. You need to develop a set of policies or procedures dictating the handling of cash in your business to avoid problems such as theft and misappropriation. Petty cash book format example definition explanation. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Entries are recorded just like a ledger account with the help of. Petty cash and the imprest system dbs3024 business. There might be a petty cash drawer or box in each department for.
Petty cash book helps us to manage money in a clear and efficient way. A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure. A column for sundries is usually added for miscellaneous payments. In this book, separate columns are provided for usual head of expenditure. Note the analysis columns that enable the transaction to be recorded and analysed at the same time. Before the rise in the use of credit cards and charge cards, nearly all companies used petty cash accounts to allow employees responsible for purchasing small supplies to do so with minimal hassle. From basic office supplies, such as printer paper and labels, to office equipment, like file cabinets and stylish office furniture, office depot and officemax have the office products you need to get the job done. The analytical petty cash book and the imprest system. A cash book is a type of subsidiary book where cash or bank receipts and cash or bank payments made during a period are recorded in a chronological order. It requires lesser time in recording and also saves the time of. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it. The most common way of accounting for petty cash expenditures is to use the imprest system. A petty cash account is simply money kept on hand to pay for minor cash items such as stamps, office supplies, tips, parking tolls, etc.
Petty cash is the small cash reserves that businesses keep on the. The keeping of the book is not different from the keeping of the main cash book the amount paid out by the chief cashier is credited in his cash book to complete the double entry. Major l earnings outcomes preparation of petty cash book in this video ive explained about petty cash book which is a ledger kept with the. Small or large companies maintain 2 types of petty cash book for all cash. Considered as the most beneficial method of recording petty cash payments. The ruling of analytical petty cashbook is given below.
Petty cash accounting procedures reconciliation uses. This fund is accounted for like it was another bank account. Nov 04, 2015 simple petty cash book analytical petty cash book types of petty cash book 5. Range of cash books, petty cash pads, receipt books and. Sep 19, 2019 petty cash or the petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check. Aug 23, 2016 columnar or analytical petty cash book with problem hindi the commerce tutor. Petty cash is a small amount of cash that is kept on the company premises to pay for minor cash needs. Just like the cash book, the petty cash book is both a book of original entry and a ledger. Count the cash currently in the petty cash box or drawer. The maintenance of petty cash book does not require specialised knowledge of accounti. Many expenses of small nature are recorded in petty cash book.
1612 1053 295 132 24 1355 1606 383 940 1329 332 1206 745 1314 931 925 1171 968 173 1432 1636 447 162 135 133 443 141 231 690 581 97 1206 178 4 685