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
Example
From the following information please show a simple petty cash book for the 1st week of Jan YYYY.
| Details of petty cash transactions | ||
| Date | Particulars | Amt |
| YYYY | ||
| 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 |
Solution
| (Solved Example) |
|||||
| Amount Received | Cash Book Folio | Date | Particulars | Voucher | Amt |
| 10,000 | YYYY
Jan 1 Jan 2 Jan 4 Jan 5 Jan 6 Jan 7 Jan 7 |
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
|
200 500 100 1000 200 8000
|
||
| 10,000 | 10,000 | ||||
> Read The balance of a petty cash book is an asset or income?