The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and. After reading this article you will learn about the format of preparing cash book. Recording of transaction in cash book and journal with. How to prepare cash book and petty cash book duration.
For example, the iedunote company decided to increase the petty cash fund. You may find out that certain types might apply to your business more effectively and so you can format your log the same way. Download petty cash book in excel file in xlsx format. 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. This cashbook can be adjusted to suit your financial yearend and is.
Simple cash book format design for quick money tracking. Amount received by the petty cashier for meeting petty expenses and the opening balance of petty cash will be recorded in this column. A day bookcumledger kept for making entry of the cash transactions as well as posting to the cash and bank accounts is called cash book. A petty cash is a cash book used to enter all small or petty expenses obtained. Petty cash book is a formal book of recording petty expenses which are incurred in cash. If you have any questions on this cash book format you can write them on the facebook comments below, or use the contact form. Apr 26, 2020 the petty cash book is a formal summarization of petty cash expenditures, sorted by date. The ruling of analytical petty cashbook is given below. A business enterprise pays through cheques and collects money from its customers through cheques. Other than the usual petty cash book, which resembles a regular cash book, there are two other types of petty cash books. Total postage printing and stationary cartage traveling expenses misc. Download petty cash book excel template exceldatapro. The petty cash book will be maintained by a separate cashier known as petty cashier in the accounting field.
As the name suggests transaction of petty nature are. How to prepare petty cash bookpetty cash book in hindi. In this format you have to simply describe each expense and its account head to balance the ledger. How to prepare analytical petty cash book in excel spread sheet. Petty cash book explanation, format, example, ordinary. 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. The credit side is bigger and thus has many columns. Basically a petty cash log template can be easily done in any spreadsheet softwaresuch as microsoft excel wherein youd create a format with columns to record all the important financial information about petty cash transactions.
Explanation of columns in the analytical petty cash book. It is a unique book of account that combines journal and ledger. Petty cash book explanation, format, example, ordinary and. It also saves time in posting each item of petty payments unnecessarily in the ledger. Sep 30, 2018 petty cash book is a formal book of recording petty expenses which are incurred in cash. These small cash payments are recorded in a separate book, known as a petty cash book.
Petty cash book definition the petty cash book is defined as relatively small amount of cash kept at hand for making quick payments for miscellaneous small expenses in the business concern. The additional analysis columns are used to analyze expenditures as they arise. An analytical petty cash book is employed by a large concern having a number of transactions of petty amount such petty. You can find the questionsanswerssolutions for the chapter 4 of cbse class 11 accountancy in this page. The following is the simple format of a petty cash book. 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. Though you can make your own petty cash log template, learning about the different types can help you out immensely.
Petty cash book template excel software accountant. This type enables the businessman to know the information about the amount being spent on each head of petty expense. Meaning, types and importance of petty cashbook srd law. Analytical and simple petty cash books are reliable in monitoring how small transactions routinely take place in a business. 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. Petty cash book allows periodical totals, therefore, saving on time. The receipt column is used to record the opening balance and the amount received from the head cashier. 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. This type of petty cash book is known as analytical petty cash book. The keeping of the book is not different from the keeping of the main cash book. How to prepare petty cash bookpetty cash book in hindi with. The simple petty cash book has only two amount columns. Large businesses maintain petty cash book to reduce the burden of main cash book.
For this purpose, a petty cashier is appointed by the chief cashier. Petty cash book meaning, cash book vs petty cash book. 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. Petty cash book definition, types, format, examples. 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. Petty cash book is the accounting book that is used for the purpose of recording the petty cash expenditure i. And the payment column of a simple petty cash book records petty. 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. Nowadays volume of bank transactions of even a small business are so high that single column cash book is not so useful. General cash book is subdivided in the single column, double column, and treble column cash book. At the end of the period a petty cash reconciliation is carried out. Petty cash book can be expressed as a formal summarization of the petty cash expenditures which refers to the daytoday normal. Just as in the main cash book, all payments are credited in the petty.
The only difference is that the payments side ruled into suitable column for recording expenses that are repetitive in nature. The imprest system is used for petty cash book maintenance. There are two primary types of entries in the petty cash book, which are a debit to record cash received. 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 standard item of expense and a column for total.
This kind of petty cash book is known as analytical petty cash book. Also, it will facilitate the accountant or the organization to. The various columns are totalled to show the reason for making payments, and then the. Totals are carried forward from page to page until the end of the periods.
Recording of transaction in cash book and journal with specimen. While recording the transactions in petty cash book if all the expenses are analyzed and entries are recorded in cash book on the basis of this analysis such petty cash book is called analytical petty cash book. Recording of transactions ii petty cash book solutions this page contains the cbse accountancy class 11 chapter recording of transactions ii notes. The analytical cash book is a book kept by a petty cashier. 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 account. Jul 15, 2015 how to prepare cash book and petty cash book duration. In a business operating this type of cash book, small cash payments are usually made out of petty cash. The analytical petty cash book and the imprest system. 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.
This form enables the manufacturer to know the information regarding the total being exhausted on each head of petty expenditure. What are the nature of transactions that are recorded in the petty cash book. This kind enables the businessman to know the information about the amount being spent on each head of petty expense. The imprest petty cash system is a method of accounting for petty cash expenses. As in the case of any other cash book, petty cash book also has the debit side and the credit side.
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. For a more detailed cash book, format it with extra columns check out the information on this in single entry bookkeeping. In this format of cash book, cash and bank transactions are recorded and thus it gives ledger of both the cash and bank accounts. 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. Even at the debit side, there is only single column will be representing the inward of cash. Mar 25, 2018 simple petty cashbook example solution 2. Enter the transaction on the debit or credit side and it will automatically calculate the cash on hand for you.
One major advantage of this system is that it saves time. Recording of transactions ii petty cash book solutions. This petty cash book is prepared on the same lines of the simple petty cash book. All petty payments are to be classified into different heads and different columns are maintained. 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. 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. Cash book contains individual columns for each expense every small payment is recorded on the credit side.
Uses of petty cash book its a cash book used to enter daily petty expenses like cost of stationery, postage and xerox copy and so on. 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. Improves employee accountability on business resources. Bookkeeping single entry bookkeeping cash book format.
While recording the transactions in petty cash book if all the expenses are analyzed and entries are recorded in cash book on the basis of this. Cash book contains cash transactions passing into and out of a business. In such a cash book there are preexisting columns for the usual expenses that recur quite frequently for an organization. One of the total payment column and second in one of the analytical amount columns. When petty expense is recorded in total payment column, the same amount is recorded in the relevant petty expense column. 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.
Thus, the book is part of a manual recordkeeping system. In other words, we can say that if we add a bank column to both sides of a single column cash book, it would become a double column cash book. When a petty expense is recorded on the right hand side of the book, same amount is also recorded in the proper expense column. Ordinary system imprest system in this system petty cashier is given appropriate amount of cash after spending the whole of that amount the submits the account to the head cashier this is the system of paying advance in the beginning. The petty cash book is a formal summarization of petty cash expenditures, sorted by date. 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. The double column cash book also known as two column cash book has two money columns on both debit and credit sides one to record cash transactions and one to record bank transactions. This book records all those expenses which are small in amount and which are incurred on regular basis. The credit side consists of several analysis columns. Enter the following transaction in the following columns. The petty cashier of john and james company paid cash for the following expenditures during march 2018. This excel cash book is suitable for any small business that wants an easy bookkeeping method a simple way to track your income and expenses. 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.
A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure. It is the most advantageous method of recording petty cash payments. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Considered as the most beneficial method of recording petty cash payments.
Other than the normal petty cash book, which resembles a normal cash book, there are two other types of petty cash books. 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. In module 12, which covered the bank cash book, the advantages of paying all cash and cheques into the bank intact were evident. So if an organization has daily expenses for food, stationery, postage, etc.
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 analytical petty cash book contains the separate column for each expenditure at the payment side. Petty cash book definition, types, format, examples imprest and. Download petty cash book excel template petty cash book is a readytouse excel template to systematically record and manage your petty or small daily routine payments.
Nov 04, 2015 simple petty cash book analytical petty cash book types of petty cash book 5. How to create a petty cash account using excel part 1 duration. A petty cash book can either be a simple petty cash book or an analytical petty cash book. The format of a petty cash book is simple and involves the details discussed below. The amount paid out by the chief cashier is credited in his cash book to complete the double entry. In this type, a separate column for each petty expense is provided on credit side. Petty cash book format example definition explanation. The cash book is 100% free for you to download and use forever, and it is fully customizable so you can change anything in it.
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