Question: What Is Petty Cash Book?

What is mean by petty cash book?

The petty cash book is a recordation of petty cash expenditures, sorted by date.

In most cases, the petty cash book is an actual ledger book, rather than a computer record.

Thus, the book is part of a manual record-keeping system..

What is petty cash book example?

A petty cash is a cash book used to enter all small or petty expenses obtained. For example tea, Xerox copy etc. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and postage.

What is the difference between a cash book and petty cash book?

The fundamental difference between the Main Cash Book and the Petty Cash Book is that only petty expenses are recorded in the Petty Cash Book. No receipt (with the exception of money received from the Chief Cashier), however small it may be, is recorded in it. … are recorded is called Petty Cash Book.

How is petty cash book prepared?

To avoid a large number of small payments, a separate cash book is made which is maintained by a petty cashier, who is paid a small amount at the beginning of the period called impress amount. When petty cashier spend the money, he is reimbursed the same amount to make further small expenditure.

Is petty cash an asset?

Yes, petty cash is a current asset. A current asset is any asset that will provide an economic benefit within one year. Petty cash refers to spending cash that a company has readily available.

How many types of petty cash book are there?

two typesPetty cash book is of two types: Columnar petty cash book, and. Imprest petty cash book.

How do you balance petty cash?

Subtract the total on-hand cash from the opening balance. Total the receipts that detail petty cash expenditures. Deduct the receipt totals from the figure in Step 2. Petty cash will balance if these two items net to zero.

What are the features of petty cash book?

The petty cash book is a formal summarization of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Thus, the book is part of a manual record-keeping system.