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What is a petty cash book? - Accountancy

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प्रश्न

What is a petty cash book?

What do you understand by petty cash book?

दीर्घउत्तर
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उत्तर

  • The petty cash book records small, petty expenses of a business, handled by a petty cashier.
  • It separates minor expenses like postage, telegrams, and coolie hire from the main cash book to avoid overburdening the chief cashier.
  • It acts as both the original and final entry book for petty expenses, showing cash received and payments made.
  • Its balance always shows cash in hand, ensuring payments don’t exceed the cash advanced.
  • The petty cash book improves efficiency and control over petty cash and reduces fraud risks.
  • Only total petty expenses are posted to the ledger, simplifying accounting tasks.
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  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 7: Subsidiary Books - 2 - Very short answer questions [पृष्ठ १४६]

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संबंधित प्रश्‍न

Answer the following question in one sentence:

State the meaning of Imprest System of Petty Cash Book.


Give word/term or phrase for the following statement:

Person who maintains Petty Cash Book.


Do you agree with the following statement:

Petty Cash Book is a book having a record of big payments.


Complete the following sentence:

Petty Cash Book is used for recording ______ expenses.


Prepare analytical petty cash book from the following particulars under imprest system:

2017
July
 
1 Received advance form cashier 2,000
7 Paid for writing pads and registers 100
8 Purchased white papers 50
10 Paid auto charges 200
15 Paid wages 300
18 Postal charges 100
21 Purchased stationery 450
23 Tea expenses 60
25 Paid for speed post 150
27 Refreshment expenses 250
31 Paid for carriage 150

Explain the meaning of the imprest system of petty cash book.


Correct the following sentences and rewrite the same:

The person who maintain Petty Cash Book is called Chief Cashier.


Prepare Analytical Petty Cash Book from the following transactions in the books of Swarali General Stores, Kolhapur. The imprest amount is ₹ 1,500 received from the main cashier.

2018 January   Amt (₹)
01 Paid Cartage 50
02 Telephone Charges 40
02 Bus Fare 20
03 Postage 30
04 Refreshment to Employees 80
06 Courier Charges 30
08 Refreshment to Customers 50
10 Cartage 35
15 Taxi Fare to Manager 70
18 Purchased Stationery 65
20 Bus Fare 10
22 Xerox Charges 30
25 Internet Charges 35
27 Postage Stamps 200
29 Repair on Furniture 105
30 Cleaning Expenses 115
31 Miscellaneous Expenses 100

From the following information prepare Columnar Petty Cash Book kept on imprest system in the books of Manisha Books Stall, Beed.

2018 April   Amt (₹)
01  Opening petty cash balance 200
02 Received a bearer cheque to make up the imprest amount 1,200
03 Gave a tips to peon 40
04 Purchased stationery 150
05 Paid Taxi Fare 35
06 Purchased Stamp pad 140
07 Paid Cartage 40
08 Paid Bus Fare 30
11 Paid to sweeper 50
13 Purchased a Box of pencils 40
14 Paid Mobile charges 35
15 Gave to Sohan on account 250
19 Paid for Refreshment to staff 150
20 Paid Railway Fare 30
21 Paid Carriage 65

From the following information prepare Columnar Petty Cash Book kept on imprest system in the books of Manisha Books Stall, Beed.

2018 April   Amt (₹)
01 Opening petty cash balance 200
02 Received a bearer cheque to make up the imprest amount 1,200
03 Gave a tips to peon 40
04 Purchased stationery 150
05 Paid Taxi Fare 35
06 Purchased Stamp pad 140
07 Paid Cartage 40
08 Paid Bus Fare 30
11 Paid to sweeper 50
13 Purchased a Box of pencils 40
14 Paid Mobile charges 35
15 Gave to Sohan on account 250
19 Paid for Refreshment to staff 150
20 Paid Railway Fare 30
21 Paid Carriage 65

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