News Piffling Cash Book
In an organization, in that place are many footling expenses to survive paid inward pocket-size amount. Taxi fare, cartage, stamp as well as stamps, stationery etc. are closed to footling expenses for which it is non practicable to upshot cheques. On the other hand, it volition larn real bulky if all these payments are entered inward the cash book. Therefore, a footling cashier is given a for certain amount of coin to brand such pocket-size payments as well as s/he enters them inward a footling cash book.
Advantages of Petty Cash Book:
• Main cashier tin utilize his/her fourth dimension to of import move since the footling expenses are recorded yesteryear footling cashier.
• It reduces the role of cheques as well as likewise avoids the inconvenience of issuing cheques for pocket-size payments.
• There are lesser chances of frauds as well as errors of all footling expenses due to the regular checking of footling cash volume yesteryear caput cashier.
Imprest System of Petty Cash Book
The move 'imprest' agency 'advance amount' given to for certain somebody to brand footling payments. It is a scheme of footling cash volume where a somebody (petty cashier) is given a fixed amount inward the showtime of the calendar month or week. He is supposed to brand all pocket-size payments of footling expenses. At the halt of the menstruum enjoin calendar month or week, the vouchers are checked yesteryear caput cashier as well as footling cashier is paid every bit much every bit he has spent during the menstruum as well as therefore that he volition convey the same amount every bit he had at the showtime of the firstly period.
Format:
Types of Petty Cash Book
There are 2 types of footling cash book:
1. Simple Petty Cash Book
2. Analytical Petty Cash Book
1. Simple Petty Cash Book
Simple footling cash volume is same every bit unmarried cash volume where exclusively ane amount column is maintained inward each side of such cash book. Amount received from caput cashier is entered on the debit side of cash volume as well as all the footling payments made yesteryear footling cashier are recorded inward credit side. Finally, the residual amount is establish out.
2. Analytical Petty Cash Book
Under this scheme of cash book, a form out column is provided for each type of footling expense inward the credit side of cash book. However debit side columns are same every bit uncomplicated column cash book. Number of columns of such footling expenses depends upon the volume of footling transactions. When in that place is large publish of transactions, exclusively almost mutual footling expenses are assembled inward the 'miscellaneous expenses' column.
Advantages of using Analysis columns
It allow us know the coin spent on each dissimilar nature of pocket-size expense.
The double entry for each analysis column yesteryear transferring the totals of the analysis columns to their respective accounts which are available inward the General ledger.