A column for sundries is usually added for miscellaneous. The analytical petty cash book and the imprest system. Under the system, the petty cash fund balance is always maintained at a fixed amount decided on when the fund is first established during an accounting period petty cash is used to pay cash expenses which are supported by petty cash vouchers. Small or large companies maintain 2 types of petty cash book for all cash. Simply can say pocket money for offices minor expenses. One major advantage of this system is that it saves time. The various columns are totalled to show the reason for making payments, and then 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. Download cash book excel template 5 types of cash book templates with predefined formulas to help you record routine cash transactions of a company regularly. Petty cash book meaning, cash book vs petty cash book. For this reason in such businesses, the petty cash book is maintained in columnar or analytical form, with a separate column for each usual item of expense and a column for total. Like columnar petty cash book, it also contains many money columns in the credit side and one money column in the debit side and a particular column and a date column are also similar to that of the columnar or analytical petty cash book. On 21st january, 20 the petty cashier had with him rs. The analytical cash book is a book kept by a petty cashier. Petty cash book template is different from other company financial documents. An analytical petty cash book is employed by a large concern having a number of transactions of petty amount such petty. Petty cash book introduction cash book accounts class 11 duration. As the petty cashier cannot draw as and when he likes, it prevents unnecessary accumulation of cash in his hand thus the chances of defalcation of cash are minimised. Recording of transaction in cash book and journal with.
A petty cash book is an accounting ledger may contain transactions of small amount of money for regular expenditures on small items. So if an organization has daily expenses for food, stationery, postage, etc. For this purpose, a petty cashier is appointed by the chief cashier. Enter the following transaction in the following columns. When petty expense is recorded in total payment column, the same amount is recorded in the relevant petty expense column. The description of each expenditure is recorded in particulars column but the head of expenditure recorded in divide column the major advantage of maintaining analytical petty cash book is that each. These small cash payments are recorded in a separate book, known as a petty cash book.
In a business operating this type of cash book, small cash payments are usually made out of petty cash. Required c i state the amount of cash there should have been in the petty cash box. A petty cash book can either be a simple petty cash book or an analytical petty cash book. You can find the questionsanswerssolutions for the chapter 4 of cbse class 11 accountancy in this page. The cash book can be maintained properly as petty transactions are maintained separately. Imprest system petty cash book is quite helpful when the firm uses analytical petty cash book, wherein the book has one column to. The simple petty cash book has only two amount columns. In big business apprehensions, the petty cash book is maintained in analytical form, with a detach column for each standard item of expense and a column for total.
Petty cash book helps in making the records of cash transactions uptodate because of the division of labor in recording cash transactions. Thus, the book is part of a manual recordkeeping system. As in the case of any other cash book, petty cash book also has the debit side and the credit side. When an analytical petty cash book is maintained for recording the petty expenses, it will be practically more convenient to consider the petty cash as a separate account and take cheques issued for the petty cash imprest as a debit to petty cash account and all petty expenses paid as credits in petty cash. November 2019 learn how and when to remove this template message. Petty cash book format example definition explanation as the petty cashier has to account for his expenses, before he can draw further sums, the petty cash book remains up to date. 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. 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 book is the accounting book that is used for the purpose of recording the petty cash expenditure i.
At the end of the month petty cash book receipt and payment column is totaled and balanced here total payments are balance cd i. Related topic difference between cost and management accounting analytical petty cash book. Petty cash is maintained on the basis of imprest system. Analytical petty cash book or columnar petty cash book is different from the simple petty cash book in the sense that in this type of petty cash book, an analytical presentation of cash payment is made. 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. Format of analytical petty cash book in big business apprehensions, the petty cash book is maintained in analytical form, with a detach column for each. Petty cash book is a cash book in which the petty cashier records petty cash. The petty cashier of john and james company paid cash for the following expenditures during march 2018. Total postage printing and stationary cartage traveling expenses misc. Most of the companies are using this accounting tool to kept the sufficient amount of money at office to buying small things that are require.
Petty cash book explanation, format, example, ordinary and imprest. In such a cash book there are preexisting columns for the usual expenses that recur quite frequently for an organization. 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. Considered as the most beneficial method of recording petty cash payments. 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.
The receipt column is used to record the opening balance. The debit side is smaller and has very infrequent entries because cash receipt by the petty cashier is mainly from the cashier at the beginning or close of a specified period. Recording of transactions ii petty cash book solutions. For smallscale business, simple petty cash book is sufficient but on a medium or large scale business number of petty expenses increases hence it is desirable to have the separate record for each type of petty expenses. For example, the iedunote company decided to increase the petty cash fund. 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. How to form, pour, and stamp a concrete patio slab duration. The petty cash book is a formal summarization of petty cash expenditures, sorted by date.
The ruling of analytical petty cashbook is given below. In this type, a separate column for each petty expense is provided on credit side. This type of petty cash book is known as analytical petty cash book. What has probably happened in this scenario is we credit the petty cash e.
In big business apprehensions, the petty cash book is maintained in analytical form, with a detached column for each standard item of expense and a column for the total. In module 12, which covered the bank cash book, the advantages of paying all cash and cheques into the bank intact were evident. Advantages and disadvantages of analytical petty 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. A column for sundries is usually added for miscellaneous payments. One major advantage of this analytical system is that it saves time. All petty payments are to be classified into different heads and different columns are maintained. The petty cash book will be maintained by a separate cashier known as petty cashier in the accounting field. For instance, if you want to purchase espresso for the workplace coffeemaker or paying tolls or stopping meters, petty. As the petty cashier has to account for his expenses, before he can draw further sums, the petty cash book remains up to date. Petty cash book definition, types, format, examples imprest and.
The chief cashier is relieved from the cumbersome work of petty cash disbursement. Petty cash book format in excel a petty cash book can either be a simple petty cash book or an analytical petty cash book. Petty cash is a small amount of discretionary funds in the form of cash used for expenditures. Format of petty cash book below is the sample format of petty cash book. This kind of petty cash book is known as analytical petty cash book.
In this column, the date of receipt payment of cash is recorded. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Recording of transactions ii petty cash book solutions this page contains the cbse accountancy class 11 chapter recording of transactions ii notes. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and. Other than the normal petty cash book, which resembles a normal cash book, there are two other types of petty cash books. The receipt column is used to record the opening balance and the amount received from the head cashier. Periodically, different nominal accounts are debited and the petty cash account is credited in ledger for expenses recorded in petty cash book. The person who is responsible for the recording the receipts and the payments is known as the petty cashier. However, purchases made using cash are hard to track, easily forgotten, and ultimately make accounting a challenge.
In large business concerns, the petty cash book is maintained in columnar or analytical form, with a separate column for each usual item of expense and a column for total. The imprest system is used for petty cash book maintenance. Also, it will facilitate the accountant or the organization to. When a petty expense is recorded on the right hand side of the book, same amount is also recorded in the proper expense column. To analyzing the individual payments you have to just total individual expenses columns. Petty cash book template excel software accountant. For smallscale business, simple petty cash book is sufficient but on a medium or large scale business number of petty expenses increases hence it is desirable to have the separate record for each type of petty. The following is the simple format of a petty cash book.
How to prepare analytical petty cash book in excel spread sheet. Petty cash book can be expressed as a formal summarization of the petty cash expenditures which refers to the daytoday normal. The imprest petty cash system is a method of accounting for petty cash expenses. In the other example, if an entry is a debit in the cash book, our asset has increased bank and therefore we have received money from somewhere. Petty cash book excel template petty cash funds have been around for a long time as a quick method of providing funds to employees that need to make a purchase for a company. Free download excel petty cash book template exceltemple. Imprest system petty cash book is quite helpful when the firm uses analytical petty cash book, wherein the book has one column to track the receipt of the amount, from the chief cashier and several other columns to write down expenses under the specific head. Fixed amount is paid to the petty cashier along with the imprest system. Enter the transaction on the debit or credit side and it will automatically calculate the cash on hand for you. There are two primary types of entries in the petty cash book, which are a debit to record cash received. Petty cash book format example definition explanation. It is the most advantageous method of recording petty cash payments. At the end of the period a petty cash reconciliation is carried out. How to prepare analytical petty cash book in excel spread.
One of the total payment column and second in one of the analytical amount columns. In this video ive explained about petty cash book which is a ledger kept with the petty cash fund to record amounts that are added to or subtracted. Petty cash book definition, types, format, examples. This kind enables the businessman to know the information about the amount being spent on each head of petty expense. As the petty cashier cannot draw as and when he likes, it prevents unnecessary accumulation of cash in his hand thus the chances of defalcation of cash are. Totals are carried forward from page to page until the end of the periods. A petty cash is a cash book used to enter all small or petty expenses obtained.
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