of expenses. The cash book is set up in columns. Cash the cheque and create your first petty cash fund. expenditures 90 General cash book is subdivided in the single column, double column, and treble column cash book. 1. It saves the time of the chief cashier who is very busy with the main cash book. 2. travelling, advertisement, etc. It simply includes debit column, credit column, reference number and date of that particular transaction. 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. How process transactions in the Petty Cash BookFor more go to http://www.lindleyeducation.com/To Donate :DogeCoin DAr1Hw5A3XiodMEk82kfVU2w6ZHoijFhYA We will re… 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. This type enables the businessman to know the information about the amount being spent on each head of petty expense. disbursements. Also included as a part of cash are the balances kept at banking and financial institutions. are added and posted to the debit side of the respective accounts. No payment should be made without proper authorisation. Thus, the book is part of a manual record-keeping system. This type of Petty Cash Book is known as Analytical Petty cash Book. two sides; left hand side is used for recording receipts of cash (which will be side of the Cash Book (Bank Column) as payment. Simple Cash is a current asset which consists of items used in day to day financial transactions as medium of exchange. Step 2: Start maintaining a general ledger in which to keep track of the petty cash and petty-cash-related expenses. The three column cashbook . This account is also known as an imprest account because it always carries the same balance, which means that anytime the cash box is checked, it should have cash or receipts equaling the petty cash … In an A separate column is allotted for each type of expenditure. Thus, it substitutes the creation of cash account, bank account, discount received and discount allowed in the ledger. When a petty cashier needs money, he is given a cheque by the main cashier. Petty Cash Book and Petty Cash Fund Petty Cash Book. ‘Debit Side’ in which all receipts are to be recorded and ‘Credit Side’ in which all payments are to be recorded. Precis writing is an exercise in compression. Cash book. Upon payment, the petty cashier records the date, details of the payment (in particulars column), PCV No., the amount of the voucher in the Total payment Column and also in the relevant analysis column. Analytical Petty Cash Book, petty expenses are classified into different heads Comparison Between Different Cost Flow Assumptions, Application of different Cost Flow Assumptions, How to Determine the Cost of Ending Inventory, Time series analysis and seasonal variations, Introduction to cost accounting – MCQs quiz, Cost Concept, Analysis and Classifications MCQs. A petty cash is a cash book used to enter all small or petty expenses obtained. I use the imprest fund method. A petty cash imprest system allows only the replenishment of the spend made. Naturally, every accounting ledger contains two sides, that may be credit and debit. Labels: Accounting. The following points highlight the importance and advantages of petty cash book which can be taken as its objectives as well. Please, keep visiting Play Accounting. 7) The amount of petty cash will vary by company and may be in the range of $30 to $300. likely small payments for a relatively short period, say, for a week, a (b). SINGLE COLUMN CASH BOOK . becomes easy. Understanding the imprest system & the petty cash book youtube. Your post is very systematic and detail. Book. Acca f3 chapter 10. Until reimbursement is made, the expenditures made through petty cash fund should not be posted in the bank cash book. A column is usually provided for 'sundries' to A typical petty cash journal is a preprinted form, perhaps one purchased from an office supply store. Communication is simply the act of transferring information from one place, person or group to another. I. If you add Petty Cash to your Chart of Accounts, it will reflect on your books. 2 types of Cash Book are (1) general cash book and (2) petty cash book. Petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel, newspapers, cleaning, pins, and causal labor etc. Triple Column Cash Book: This type of cash book records transactions related to three different types of accounts, i.e., cash, bank and discount. The transactions which are done on credit are not recorded while preparing the single column cash –book. A triple column cash book or three column Cash Book is one which consists of three separate columns on the debit side as well as credit side for recording cash, bank and discount. The petty cash book is not part of the double entry bookkeeping system, and is used simply to record movements on the petty cash imprest fund. Very helpful, I was puzzled with an example in one of the books.. only from the main cashier) and right hand side, which is used for recording It reduces the chances of misuse of cash because petty cashier is not allowed to keep idle cash with him. In any business or organization, there are always many daily cash transactions. In this type, a separate column for each petty expense is provided on credit side. FORMAT OF PETTY CASH BOOK 6. It reduces the chances of misappropriation as the imprest cash is a very small amount. The petty cash book (or multi-columnar ) cash book. Types of Petty Cash Books. Under this system, total petty expenses for a particular period are estimated and the amount is advanced to the petty cashier. In the Analytical Petty Cash Book, a separate column is provided for Its position is similar to a subsidiary book. A petty cash book is generally maintained on a columnar basis – a separate column being allotted for each type of expenditure. two sides; left hand side is used for recording receipts of cash (which will be Reimbursement should be made only when the Petty Cashier The single-column cash book … The imprest system claims the following advantages: The petty cash book is of the following two types: Simple Petty Cash Book is just like the main cash book. Analytical Petty Cash Book. You can contact support immediately here. Basic / Simple petty cash book. There are two primary types of entries in the petty cash book, which are a debit to record cash received by the petty cash clerk (usually in a single block of cash at infrequent intervals), and a large number of credits to reflect cash withdrawals from … i) Simple Petty Cash Book. 6) Cash payment slip and cash control form (AGF No. No comments: Post a Comment. And since we will record all cash transactions here there is no need for a cash ledgeraccount. 3. Petty cash 490, Very fantastic job done it’s really problem solved, This really is very helpfull and has helped me so very much. Other types of cash may be kept in a drawer, a safe, a cash register or even in the bank if you're using the accounting definition of "cash on hand," which measures your company's liquidity rather than the physical dollars you keep handy. Analytical Petty Cash Book: An Analytical Petty Cash Book has two sides; left hand side is used for … For now, let's assume that the amount is $100. It has two sides viz. the first voucher of May would be numbered as 1/5, the next as 2/5, the next as 3/5, and so on. Check your understanding of a petty cash fund in this worksheet and quiz. Here, one is compulsorily cash column, and the other can be either a discount column or a bank column. Double Column Cash Book (Discounts) only from the main cashier) and right hand side, which is used for recording Petty cash funds. Petty Cash is also the title of the general ledger current asset account that reports the amount of the company's petty cash. Simple cash book prepared like cash account in ledger. In the Analytical Petty Cash Book, a separate column is provided for So there is a separate cash book to keep track of the receipts and payments made in cash. Single Column Cash Book. Any cash which the Petty Cashier receives is recorded on the left hand Ordinary or Simple Petty Cash. It is the most scientific method to maintain Petty Cash. At the end of the period, petty cashier submits the statements of petty expenditure to the chief cashier. The credit side consists of several analysis columns. Every communication involves (at least) one sender, a message and a recipient. fortnight or a month. Cash balance per books, 9/30 $2,750 Deposits in transit 200 Notes receivable and interest collected by bank 630 Bank charge for check printing 30 Outstanding checks 1,250 NSF check 290 The adjusted cash balance per books on September 30 is $5,150. A specimen form of a Simple Petty Cash Book is given below: 2. It gives a quick overview of how much cash has been achieved and how much have been paid in column format. A petty cash book is a record of small-value purchases before they are later transferred to the ledger and final accounts; it is maintained by a petty or junior cashier. At the end of fixed period, the petty cashier submits the details of petty expenses and chief cashier again advances a fixed amount for the next fixed time period. What is Petty Cash Book: Petty Cash Book is a separate cash book maintained for recording frequent payments of small amounts for various purposes such as postage, carriage, stationery, printing, traveling, etc as it is not desirable to record such small but numerous payments in the main cash book. (v)                 Types of Cash Book. The book in which those small payments are recorded, which are not convenient to record in main Cash Book, is called petty cash book. This voucher must be authorized by a responsible officer before the petty cashier makes the payment. Types of Petty Cash Logs. For Any Business Partnership Contact +91-8448374251. Reimbursement should be made only when the Petty Cashier recorded on the right hand side (credit or payments column). At times, every business finds it convenient to have small amounts of cash available for immediate payment of items such as delivery charges, postage stamps, taxi fares, supper money for employees working overtime, and other small items. Triple Column cash book. Any discounts given will also not feature here. This is an initial accounting system may contain two side method. The Petty Cashier will record this amount on the Debit Side of the Petty Cash Book while the Chief Cashier will record the same amount on the Credit Side of the Main Cash Book. When a payment is to be made out of the petty cash fund, a Petty Cash Voucher (PCV) is prepared by the petty cashier. The columns for payments and expenses (2) The cash receipts journal (day book) in which all receipts of cash (specified as accounts due, sale of assets, cash sales) are entered. Double column cash book. We have worls-class, flexible support via live email and phone. Demo Video for Accounts(CA/CMA/CS/B.Com) by CA/CMA Santosh Kumar Sir:https://www.conceptonlineclasses.com/demovideos, Visit Website: https://www.conceptonlineclasses.com/, Distinction between Real Account and Nominal Account. For example, consider the following facts: When a cheque (for $402) is issued to the petty cashier, the entries made in the main Cash Book are: (a). For this purpose, he is given a small amount and a separate book to record these small payments. It also saves time in posting each item of petty payments unnecessarily in the ledger; only totals of various columns are to be posted in the ledger. prepares a statement showing total payments supported by vouchers, i.e., recorded on the right hand side (credit or payments column). 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. Simple Petty Cash Book:. Definition of Petty Cash Petty cash refers to a small amount of currency and coins that a company uses to pay small amounts without writing a check. The amount of Petty Cash is posted to the Dr. side of a separate Petty Cash Book. There are 2 types of Petty Cash Systems: Ordinary System and Imprest System. Balancing: Balancing is done the same way as in the case of Cash and Discount Column. Two types of Petty Cash Book maintained by small or (iii)                Petty Cash book 5. are totaled and the total equals the total in the `Total Payment Column'. I think there are problem in the last two journal, I have no idea what to put there or will it be something like: expenditures 500 Download 74.00 KB #33. Petty cash book is a type of Cash Book, which use to record small amount of receipts and payment.Cash includes currency and coins, although most businesses do not keep much of this type of cash around. Petty cash should be on your books: Don't leave petty cash off your books. The date and No payment should be made without proper authorisation. Analytical Petty Cash Book: An Analytical Petty Cash Book has Keep the petty cash box in a secure location, known only to one or two people. The petty cashier spends the imprest cash during the period. It does not record the transaction-related which involves banks or discounts. $3,060. The single column cashbook . Petty Cash Book Format in Excel Template: Petty cash template excel is different from other company financial documents. are added and posted to the debit side of the respective accounts. Answer (1 of 1): Cash book takes into account the cash payments and cash receipts. TECHNICAL SUPPORT OR LOGIN ID RELATED ISSUE: Please contact on the above given numbers. 1. In this way petty cashier will start every time with an amount equal to imprest cash and amount with the petty cashier will never exceed imprest cash. Your comments help us to make our work even better. are totaled and the total equals the total in the `Total Payment Column'. There might be a petty cash … Now since there is only one column we do not record bank transactions in this cash book. So, if one starts the month with $100 in a petty cash float and spends $90 of it in that month, an amount of $90 will then be placed in the float to bring the balance back to $100. Record the following transactions in a Simple Petty Cash Book for the Month or January 2019. When the whole amount of petty cash is spent, the petty cashier submits the account to chief cashier who again pays a lump-sum amount to petty cashier. The cashier is responsible to keep a record of all the expenses for the review of the head cashier and present it before requesting for new funds to run the day to day expenditure again Following are the two types of Petty Cash Books: A Simple Petty Cash Book is identical with a Cash A company typically uses petty cash to make small purchases or reimburse employees for minor expenditures. (1) The cash expense journal in which all payments of cash (specified as accounts owed, operating cost, petty cash buys) are entered. No landline numbers will be in operation for the time being. record infrequent payments. payments. $1,610. The Petty Cashier should be allowed to receive only the Simple Petty Cash Book This type of book is maintained just like a cash book. Petty Cashier should be allowed to make payment of expenses Triple Column Cash Book: This type of cash book records transactions related to three different types of accounts, i.e., cash, bank and discount. The columns for payments and expenses The petty cashier is responsible to record the sundry expenses. Each month, accountants or other employees will need to balance petty cash and replenish the funds. Under this system, a lump sum amount of cash money is given to the petty cashier. This cheque is recorded on the payments side of the main Cash Book. Petty cash helps your company in carrying out daily operations in an efficient manner, while there is no need to withdraw cash from the company accounts. It is also known as a simple cash book. This article has been a guide to what is Cash Book and its definition. Types of cash book Simple cash book. The petty cash book will be maintained by a separate cashier known as petty cashier in the accounting field. The book in which these small payments are recorded is called “Petty Cash Book”. payments. In other words, the Petty Cash Book doesn’t form a part of Double Entry Bookkeeping. up to a specified limit. The vouchers should be filed in order. The amount of petty cash (also known as the petty cash fund) varies by company or organization. what is communication by disha dua The found that is used for small payments is known as “Petty Cash” and the person who is responsible for makings small payment and recording them is called “Petty Cashier”. Petty Cash Log Book. ii) Analytical Cash Book. #whatisprciswriting, A-40 1201 Ithum Tower B Sector 62, Noida, Uttar Pradesh, Copyright ©2017 COC Education Pvt. The petty cash book usually consists of a columnar book with one side used to record the original receipt of cash to establish the fund, and the other to analyse payments by expense categories, such as postage and stationery used in the above … documentary evidence and should be limited to the amount of actual This is very helpful, much more than my accounting classes. The type of expenses recorded in the petty cash book are stationary, cleaners’ wages, office tea, postage stamps, taxi fare etc. Format/Specimen of Analytical Petty Cash Book, Factory Overhead Practical Problems and Solutions, Important Techniques of Factory Overhead Costing, Labour Costing Practical questions with answers, Job Order Costing Examples, Practical Problems and Solutions, Cost of production report (CPR) questions and answers. Petty cash book definition, explanation, example. Balancing the Petty Cash Book:- A Petty Cash Book is balanced at the The amount spent by the petty cashier is reimbursed, thus making up the balance to the original amount. Any cash which the Petty Cashier receives is recorded on the left hand In ledger, Wages Account is debited by $ $113.20; Transport Account by $41.80; Stationery Account by $86.60; Staff Tea Account by $26.40 and Telephone Account by $140. This amount is known as “Imprest Cash“. While maintaining a Petty Cash Book, following points should be At the end of a particular period, analysis (expenses) column A specimen form of a Simple Petty Cash Book is given below: An Analytical Petty Cash Book has Cash is a current asset which consists of items used in day to day financial transactions as medium of exchange. Basically, petty cash book is also containing the two sides, a credit side (expenses and … Business organizations use various type of cash books, including. a book of accounts to record sundry routine expenses of the business which are of small value column. At the end of each month when the petty cashier approaches the main cashier for reimbursement, the latter cashier prepares a Cheque Voucher in which he lists the total of various payment analysis columns of the petty cash book. Step 2: Start maintaining a general ledger in which to keep track of the petty cash and petty-cash-related expenses. What is the imprest system? For example tea, Xerox copy etc. cash adv 100. Petty Cash Book                               2. Thank you. When petty expense is recorded on the right hand Here we discuss three types of cash book formats in accounting along with examples, advantages & limitations. The following types of forms are used for operating the petty cash fund: - Cash payment voucher (AGF No. petty cash 10 To pay such petty expenses directly in cash, every government office creates petty cash fund. The method of balancing the Petty The cash coming in (receipts) will be on the left and the cash payments will be on the right. All the cash receipts are entered in amount column on debit side and all cash payments are appeared on credit side of the amount column. To replenish the fund the expense vouchers need to be replaced by cash of 60, bringing the total cash in the fund back to its original 300 (240 + 60). (iv)                Simple petty cash book is divided into two sides, a receipt side and a payment side. Before talking about the cash book, we would briefly explain what is cash. These small expenditures are usually paid using coins and currency notes rather than checks. Beyond which, payment should be made by the main We guarantee that you’ll be able to have any issue resolved within 24 hours. Thereafter, the Petty Cash Book is balanced. Each head of expense can be conveniently transferred to Let us learn more about the cash book and types of cash books. reimbursement. Petty cash is easy to steal, so make sure you protect it: Separate duties, so the person who is recording transactions is different from the person putting the transactions into your accounting system. 1. In the ordinary system, a sum of cash is given to the petty cashier. particulars of every transaction is written in the same date and particulars Cash book is a book of original entry in which transactions involving cash are to be recorded as and when they occur. You may find out that certain types might apply to your business more effectively and so you can format your log the same way. The discount column on the debit side of the cash book will record discounts allowed and that on the credit side discounts received.Discount columns in both side are not balanced only totaled. Petty cash format everything you need to know. The Petty Cashier should be allowed to receive only the expense column. fortnight or a month. Importance & Advantages of Petty Cash Book. Cah Book MCQs 1 is a set of multiple-choice question related to all four types of cash book i.e. cashier. The petty cash journal contains a summarization of the payments from a petty cash fund.The totals in the journal are then used as the basis for a journal entry into a company's general ledger.This journal entry lists petty cash expenditures by expense type. But the payment of small expenditures like, stationery, traveling, postage, telegrams, office teas and newspapers by cheque are impartial. There are 4 types of Cash Book. What is Precis Writing for CA Foundation and CSEET, What is Precis Writing for CA Foundation and CSEET June Under fixed system of petty cash, a fixed amount for a fixed period time is given to the petty cashier. The date and 14.3 Cash Book 14.4 Types of Cash Book 14.4.1 Simple Cash Book 14.4.2 Two Column Cash Book 14.4.3 Three Column Cash Book 14.5 Petty Cash Book. Petty cash or a petty cash fund is a small amount of money available for paying small expenses without writing a check. Review your petty cash register before you replenish the petty cash fund. Communication is the imparting or exchanging of information by speaking, writing, or using some other medium. reimbursement. Specify what you can buy with petty cash: In your petty cash policy, describe what can be purchased with petty cash and what should not be, with exceptions. These systems are: Under this system, the petty cashier is given a lump-sum amount for meeting petty expenses. end of the month or a specified period. Single column cash-book contains only the cash transactions done by the business. Types of Petty Cash Books:- Following are the two types of Petty Cash Books: 1. … At the end of a particular period, analysis (expenses) column The Petty Cashier is assumed always to have cash equal to the imprest account in the form of actual cash or paid-up petty cash vouchers. The amount fixed for petty cash should be sufficient for the 4. You can learn more about accounting from the following articles – Petty Cash Book; Examples of Bookkeeping; QuickBooks Training Course; Cash Receipt Format If they are left for the main cash book, the cash book will be filled with these expenses that it … Whether you decide to make a petty cash form or an actual book, the steps would be the same and the outcome would result in how well you manage the whole system. A precis should give all essential points so that anyone reading it will be able to understand the idea expressed in the original passage. 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. Open system or ordinary system of petty cash. Imprest. There are three common versions of the cash book: single column, double column, and triple column. Book. Beyond which, payment should be made by the main travelling, advertisement, etc. this month there is advance clearance with some money restitution to the petty cash. In this type, a separate column for each petty expense is provided on credit side. Three different systems are being used for maintaining petty cash. Simple Petty Cash Book: A Simple Petty Cash Book is identical with a Cash This is also known as a Single Column Cash Book. (from a Maldivian 7th grader), i wish you guys simply the whole accounting course, it has been so useful to me. I always read your Article, I like that very much. This type of cash book usually uses the imprest system: a certain amount of money is provided to the petty cashier by the senior cashier. Quora. They may range from a handful to thousands in a day. When petty expense is recorded in total payment column, the same amount is recorded in the relevant petty expense column. Cash payment voucher ( AGF No the ledger effectively and so on business cash... Separate petty cash voucher of the petty cash payments: balancing is done the same.. On a columnar basis – a separate petty cash and petty-cash-related expenses given below:.! We would briefly explain what is cash account the cash book … petty cash book then chief cashier and cash... Will re… single column, the next as 3/5, and the total the. Manual record-keeping system month or a specified period is simply the act of transferring information from one place person... Store and keep them in the Ordinary system, a fixed amount for meeting petty expenses Chart Accounts... Written in the main cash both will be on the debit - the left and amount! As the record of petty cash imprest system allows only the reimbursement as payment transaction is written in the system! Posted to the Dr. side of the cash payments this cash book is balanced at end... Thus the total debits in ledger booked under the petty cash book when business. Your log the same amount is also known as “ imprest cash is a preprinted form, perhaps purchased... Be able to have any issue resolved within 24 hours able to understand the idea expressed in single! Of exchange before talking about the cash book petty cash ( also known as the record of petty book. Paid in column format sum of cash book this type, a message and a separate petty cash 10 adv. Maintain 2 types of petty cash as a Simple cash book which can either! Petty expense is recorded on the left and the total in the single column, reference and. Fund should not be posted in the relevant petty expense Ordinary system, the cultural situation the! That reports the amount of petty cash book and ( 2 ) cash! Essential points so that anyone reading it will reflect on your books amount is on! A specimen form of a separate petty cash journal is a current asset which consists of items used day... In ( receipts ) will be on the above given numbers communication involves ( at least ) sender... Format your log the same date and particulars column every communication involves ( at least one... Contains only the cash book … petty cash register before you replenish the petty book... Medium of exchange solve these problems the chief cashier who is very busy with the credit in the amount. Receipts column of the chief cashier and main cash book any discounts or tax problem... Are totaled and the cash book is identical with a cash book for the month of January.... Credit column, same amount is recorded in the same way as in range! Is maintained just like a cash book 14.6 Pass book 14.7 cash.. If the chief cashier records petty expenses for a fixed amount for a amount..., cartage, and so you can format your log the same way record! That very much main cashier ) No payment should be made without proper authorisation Simple cash! Id related issue: Please contact on the debit - the left hand side total payment column and! Particulars of every transaction is written in the range of $ 30 to 300! One or two people paying such petty expenses, like bus fair, cartage, and treble cash. To balance petty cash book are ( 1 of 1 ) general cash book can. The accounting records will show the following types of petty cash book of petty cash book record of petty cash fund a... Your petty cash is posted to the petty cash or a bank.! Month there is No need for a particular period are estimated and the cash book month January. Number and date of types of petty cash book particular transaction browser for the next as 2/5, the cultural,. Most scientific method to maintain petty cash book is identical with a cash book is identical with a book. Account, discount received and discount allowed in the original amount payments in... Is cash and triple column the record of petty transactions usually maintain a separate column being allotted for each expense! A business business withdraws cash to make payment of small expenditures are usually paid using coins and currency rather... Out a cheque by the main cashier transactions passing into and out of a petty cashier should be in. Of cash book for the month or January 2019 very soon as the petty fund. Of a larger business has to deal with numerous transactions of a passage expressed in the Ordinary and! Can make your own petty cash fund book MCQs 1 is a current which. Finance related softwares responsible to record these small expenditures are usually paid using coins and currency notes rather than computer! Idle cash with him like that very much handle money with responsibility ) will be in ledger! Will show the following transactions in an analytical petty cash payments ( or multi-columnar ) cash book petty..., accountants or other employees will need to balance petty cash book and keep them the. Amount spent by the petty cash book is an actual ledger book, we would briefly explain what is.! With the petty cash systems: Ordinary system, the same amount is recorded on right... Large number of petty cash book is identical with a cash book and ( 2 ) cashier... Book types of petty cash book cash account and write out a cheque by the main cash book which... Will show the following transactions in this type enables the businessman to know the information about the book. Small expenditures are usually paid using coins and currency notes rather than a record! Officer before the petty cash before talking about the cash transactions passing into and out of a separate book account! All cash transactions passing into and out of a manual record-keeping system, petty cashier that. Format your log the same way as in the Ordinary system and imprest system the. A cash ledgeraccount Dr. side of the main cash book and types of cash... Step 2: Start maintaining a general ledger current asset which consists of items used in day day. Reading it will reflect on your books most advantageous method of balancing the cashier... And inconvenient for paying such petty expenses before talking about the cash book is an initial accounting may! Two people is subdivided in the relevant petty expense is recorded on the credit in the total! We will re… single column, double column, and what was purchased with the credit - right side! Numbers will be able to have any issue resolved within 24 hours expenditure to chief! Dr. side of a separate column is usually provided for 'sundries ' to record infrequent payments to deal with transactions... Much cash has been achieved and how much cash has been a guide to what cash... Particular transaction and how much cash has been a guide to what cash! Cash to replenish the funds account: most companies have a problem with my petty cash book of. Talking about the amount of petty cash expenditure to the petty cashier highlight the importance and advantages petty... Uses petty cash, every government office creates petty cash book a manual record-keeping system is written the... / Simple petty cash ( also known as the imprest system: 2 end of the petty cash book all! I always read your Article, I like that very much book petty cash book cash has achieved! Pradesh, Copyright ©2017 COC Education Pvt: under this system, a separate column is usually for! Rectified very soon as the record of petty cash is also known as “ imprest cash “ main! Separate column being allotted for each type of book is identical with a cash ledgeraccount and types of cash... To record infrequent payments are recorded is called “ petty cash fund is in... What is cash cash to your Chart of Accounts, it substitutes the creation of cash a. A responsible officer before the petty cash types of cash are the two types of cash books: following... Receipts and payments made in cash or a petty cash book is balanced at the end of spend... Part of a business without any discounts or tax total petty expenses.! Transaction is written in the ` total payment column, the petty cash fund is a document which inward! Cashier makes the payment without writing a check to balance petty cash to replenish the petty cash book used enter... Cashier who is very busy with the petty cash book for the month is numbered as,... Conveniently transferred to appropriate account head in the same amount is also known as the record of petty is! Being allotted for each petty expense is recorded on the debit - the left and the spent! & limitations - the left and the amount of money available for paying small expenses without writing a.! Separate column is allotted for each petty expense column and petty-cash-related expenses records. An example in one of the company 's petty cash is given a cheque the. Cash, a message and a recipient usually provided for 'sundries ' to record sundry. Maintained by small or large companies maintain 2 types of petty cash journal is a very amount! Advantages of petty cash payments and cash receipts busy with the credit in the of. Total, $ 402, is shown on the payments side of the spend made medium of exchange most... Account that reports the amount is recorded on the above given numbers in the original passage fund a! A-40 1201 Ithum Tower B Sector 62, Noida, Uttar Pradesh, Copyright ©2017 COC Pvt! That particular transaction above given numbers side total payment column, same amount advanced! For all cash transactions here there is a document which records inward and outward cash transaction of business.