Petty Cash Book: Types of Petty Cash Book in Accounting (Diagrams & Examples)

Large and small companies keep two kinds of Petty Cash Book for all cash transactions in a business. Big or small companies maintain two kinds of Petty Cash Book to ensure rapid, easy, and reliable recording of cash transactions.

It is contingent on the nature, quantity, and importance of transactions in the business. Cash transactions can be in the form of cheques or cash.


What is Petty Cash Book?

The volume of daily petty메이저놀이터 expenses for big business companies like ink, paper conveyance, stamp expenses, etc. is so huge that, if they’ve entered into the bank book in case it results in unnecessary time for the cashier in charge and makes the cash book excessively extensive.

To reduce the cashier’s time in charge, allow him to work efficiently, and not create an excessively large, a petty cash system is implemented.

The petty expenses are documented in the petty cash books in chronological order rather than that of the book for cash. The employee who keeps the petty cash book is known as the petty cashier.

A petty cashier gets an unspecified amount of money from the cashier in charge. He pays for petty expenses for a specific time and keeps track of the dates of the book of petty cash in chronological order.

Thus, the book in which the day-to-day expense for a specific period of a company concern is listed chronologically in order is known as the “petty cash book.

Types of Petty Cash Book

Petty cash book comes in two kinds:

The columnar cash book and

Imprest Petty Cash Book


Columnar Petty Cash Book and its Preparation Process

The columnar petty cash book has numerous money columns that record daily expenses. It is divided into two parts – the debit and credit side.

The details of cash receipts and expenses are written in a single column, referred to as the particulars column. Another column is used to record dates for debit as well as credit.

In the debit column, the total amount received by the cashier in charge is noted.

The credit side includes a variety of money columns that are required for recording expenses. Expenditures are reported in a definite manner by date in chronological order.

To calculate the total amount spent, the column of total cash is utilized to record the credit side of the equation to record the total amount of expenses.

Cash spent for purchasing assets or paying debts is recorded in distinct columns referred to as ledger columns. After that, the total of money columns and the total of the expense columns from those on the side of credit are calculated.

A difference in the total amount of cash received, and the total amount of cash transactions is known as balance. It is always a debit balance.

This book contains the cash received from the head cashier. The number of expenditures during a specific period in an organization is kept in chronological order in separate columns for money from both sides. This is known as a columnar cash book for petty cash.


Imprest Petty Cash Book

Like the columnar petty cash books, this has several money columns on the credit section and one money column on the debit section. A particular column and the date column are identical to the analytical or columnar petty cash book.

Under this imprest arrangement of petty cash book, the head cashier pays an amount fixed in advance to the clerk of the small cash register ahead of time to pay for expenses over a specific time.

When the petty 메이저놀이터 cashier provides to the head cashier a summary of the expenses that he has incurred.

It is worth noting that the amount spent at the disposal of the petty cashier can’t exceed the amount he is paid.

Following an appropriate verification of expenses, the head cashier pays a sum equal to the amount expended by the Petty Cashier in advance to make sure that the amount is equal to the prefixed funds of the petty cashier.

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