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In simple words, a petty cash book which is usually prepared by the ordinary or imprest system is a book of accounting prepared for the purpose of recording expenses of small value. For example stamps, wages, postage, carriage, stationery, etc.
The two types of petty cashbook are:
- Simple petty cashbook – In this type of book, receipt of any amount is recorded on the debit side cash column and the payments on the credit side cash column. It is similar to a cashbook.
- Analytical petty cashbook – In this type of book, a separate column is maintained for each commonly occurring expense. For miscellaneous payments, a column of sundries is added.
The pdf containing a format for both types of petty cashbooks is attached as follows.