Question

Give advantages of a petty cash book?

Answer 1

1. Saves Time: Records all petty expenses separately, saving the chief cashier’s time.
2. Saves Labor: Reduces posting work by grouping expenses under heads.
3. Controls Fraud: Chief cashier supervises petty cash, reducing misappropriation.
4. Limits Petty Expenses: Small cash amount controls overspending.
5. Prompt Cash Book Writing: Separates petty expenses for timely main cash book updates.
6. Provides Evidence in Court: Keeps vouchers/slips for petty expenses, increasing reliability.
7. Convenience: Simplifies ledger posting; only totals are posted.
8. Comparison: Enables comparison of petty expenses over periods for control.