What are the two types of petty cash book?

Generally, there are two types of Petty Cash Book:

• Columnar Petty Cash Book.
• Imprest Petty Cash Book.

What can be found in a petty cash book?

A petty cash book is maintained to record small expenses such as postage, stationery, and telegrams. A separate column is used for each type of expenditure. The difference between the sum of the debit items and the sum of the credit items represents the balance of the petty cash in hand.

What are petty cash systems?

A petty cash system is a set of policies, procedures, controls, and forms that a company uses to dispense cash for various miscellaneous needs, such as office supplies and services. Decide upon the locations where petty cash funds will be installed.

What is the classification of petty cash fund?

current asset
Petty cash is a current asset and should be listed as a debit on the company balance sheet. To initially fund a petty cash account, the accountant should write a check made out to “Petty Cash” for the desired amount of cash to keep on hand and then cash the check at the company’s bank.

What is petty cash with example?

Petty cash is a small amount of cash that is kept on the company premises to pay for minor cash needs. Examples of these payments are office supplies, cards, flowers, and so forth. A separate accounting system is used to track petty cash transactions.

Is petty cash an asset?

The petty cash account is a current asset and will have a normal debit balance (debit to increase and credit to decrease).

What is petty cash reconciliation?

Petty cash reconciliation is the process of verifying transactions involving petty cash funds. Its purpose is to ensure that funds are being used appropriately. It is an important internal control for fraud prevention.

What is petty cash float?

The Petty Cash Float is for research participant honorariums that require payments immediately upon completing their involvement with the study.

What are the 3 types of cash book?

There are three common types of cash books: single column, double column, and triple column.

Which is the best type of petty cash book?

Analytical Petty Cash Book It is the most advantageous method of recording petty cash payments. In this type, a separate column for each petty expense is provided on credit side. When petty expense is recorded in total payment column, the same amount is recorded in the relevant petty expense column.

How are receipts recorded in a petty cash book?

All receipts are recorded on the debit side and all payments are recorded on the credit side of petty cash book by the petty cashier. The cash allocated for petty expenditures for a specific period is entered on the credit side of general cash book and on the debit side of petty cash book.

Where does a petty cashier get his money from?

When a petty cashier needs money, he is given a cheque by the main cashier. This cheque is recorded on the payments side of the main Cash Book. The petty cashier gets cash against the cheque from the bank and records the cheque in the Receipts Column of the Petty Cash Book.

How are sundries included in a petty cash book?

In the analytical version, a separate column is used for each commonly occurring item of expenditure such as stamps, postage & handling, stationery, wages etc. A column for “sundries” is usually added for miscellaneous payments.