A petty cash book is just as its name suggests a book which is used for the purpose of recording small amounts of expenses in a business. Usually, the petty cashier maintains a petty cash book. It is like a petty cash account. A simple petty cash book looks like a cash book with two main columns (left for receipts & right for payments).
There are mainly two types of petty cash books;
- Simple petty cash book
- Analytical petty cash book
This article emphasizes on the first time that is “simple”.
Related Topic – Petty Cash book PDF Format
Meaning and Definition
A simple type of petty cash book is one that is maintained simply with the help of 2 primary columns, one for receipts (left) and one for payments (right).
This means any cash that the petty cashier receives is recorded on the left-hand side (debit side) of the book whereas any cash that is paid is recorded on the right-hand side (credit side). The date, along with the particulars of the item is recorded in chronological order.
Related Topic – Normal Balance and Type of Account of Petty Cash Book
Simple Petty Cash Book Format
Amount Received – The money received from the chief cashier for petty cash expenses
L.F. (Ledger Folio) – The page number of the relevant ledger account
Cash Book Folio – The page number in the cash book of the relevant ledger account
Date – Date of transaction
Particulars – Short description of the transaction
Voucher No. – Voucher number related to the transaction
Amount Paid – The sum of money paid for a particular transaction
From the following information please show a simple petty cash book for the 1st week of Jan YYYY.
|Details of petty cash transactions|
|Jan 1||Received 10,000 for petty cash|
|Jan 2||Purchased stationery||200|
|Jan 4||Paid for bank WIRE charges||500|
|Jan 5||Bought postage stamps||100|
|Jan 6||Paid for office expenses||1000|
|Jan 7||Paid for festival celebration||200|
|Amount Received||Cash Book Folio||Date||Particulars||Voucher||Amt|
To Cash A/c
By Stationery A/c
By Bank Charges A/c
By Postage A/c
By Office Expenses A/c
By Miscellaneous Exp. A/c
By Balance c/d