Subject: Other
A government office requires to pay different types of petty expenses daily. It is impractical and inconvenient for paying such petty expenses, like bus fair, cartage, and postage stamp through cheque. To pay such petty expenses directly in cash, every government office creates petty cash fund. All petty expenses are paid through this fund and their records are made in a separate book, which is known as petty cash book. Hence, the petty cash book is one in which all small items of expenses are recorded in a systematic manner made through petty cash fund. Petty cash book is a book, which is maintained by a petty cashier to make a record of petty expenses made through petty cash fund. The form is designed under the AGF No. 22.
The followings are the advantages and importance of petty cash book:
The following are the types of petty cash book:
Simple petty cash book
A simple petty cash book is one which there is only one amount column on its both sides with common date and particular columns. The debit column is used for entering the balance of cash in hand of the petty cashier at the beginning of the period and the amount received from the head cashier. The credit amount is used for entering the petty payments in order of date. It is balanced like a ledger account.
Analytical petty cash book
An analytical petty cash book is one which there is one amount column on its debit side and a number of amount columns on its credit side for different heads of expenses. Since the petty cash book analyses, the expenses into a number of heads of expenses, the name given to it is analytical petty cash book. Each payment is recorded on it twice; one on total amount column and next on individual expense column.
An analytical petty cash book is more advantageous to maintain than simple petty cash book because of the following reasons:
What is petty cash book?
Petty cash book is a book, which is maintained by a petty cashier to make a record of petty expenses made through petty cash fund. The form is designed under the AGF No. 22.
What are the importance of petty cash book?
The followings are the importance of petty cash book:
What is a simple petty cash book?
A simple petty cash book is one which there is only one amount column on its both sides with common date and particular columns.
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