Nabia Saher In: Category - Accounting OthersWhat is the type of account and normal balance of petty cash book?petty cash booktype of account ShareFacebook1 AnswerVotedRecent Dheeraj 2020-08-05T19:37:37+05:30Added an answer on August 5, 2020 at 7:37 pm This answer was edited. Petty Cash BookType of Account“Petty cash” is an asset and is shown under the category of current assets in the balance sheet. Since it is an asset, the normal balance of petty cash will show a positive balance (or) debit balance. According to the modern rules whenever there is an increase in the value of the asset then the particular asset account is being debited and vice-versa.Modern Accounting Approach-Received 250 from the head cashier for all petty cash expenses. Journalise the following transaction.Accounts InvolvedL.F.AmountNature of AccountAccounting RulePetty cash a/c250AssetDebit– The Increase in Asset Cash a/c 250AssetCredit– The Decrease in AssetThe amount of petty-cash will increase when it is debited with additional cash and will decrease when expenses incurred. Petty-cash book follows the imprest system of accounting. The normal opening balance of cash will be placed on the Left Hand Side under cash receipts column. Total payments are shown on the Right Hand Side of the petty cash book.Example-Prepare a Petty Cash Book on the imprest system from the following data as provided below-DateParticularsAmountJan 1Received cash from head cashier450 2Paid cartage20 3Paid for carriage50 4Paid for bus fare50 5Cartage charges40 6Refreshments to customers40Petty Cash Book0Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login to add an answer. Username or email* Password* Captcha* Click on image to update the captcha. Remember Me! Forgot Password?