Petty Cash Book

Petty cash book is a type of Cash Book, which use to record small amount of receipts and payment. Cash includes currency and coins, although most businesses do not keep much of this type of cash around. Also included as a part of cash are the balances kept at banking and financial institutions. These balances include savings and checking accounts.

It is most common to find with large commercial businesses that all receipts and payments are made through bank. Since expenses like conveyance, carriage, postage, telegrams, traveling etc, cannot be made by means of checks. The maintenance of a small cash balance to meet these petty payments. The Imprest System is used for petty cash book maintenance. For example, On June 1, 2017, Rs. 1,000 was given to the petty cashier. He had spent Rs.940 during the month. He will be paid Rs. 940 on 30th June by the cashier so that he may again have Rs. 1,000 for the next month of July.


>>> Cash Book MCQs 1

>>> Cash Book MCQs 2

>>> Cash Book Problems and Solutions.

Petty Cash Book Examples


Example # 1:

Enter the following transactions in the Petty cash book of Sonia Manzoor; Rs. 100 was given to cashier on 1st March, 2017 on the imprest system:


2              Paid for postage stamps     Rs. 8                         23           Paid for ink and nibs      4

2              Paid for stationary              10                               26           Paid for train fair          5

3              Paid for cartage                   4                                28           Paid for bus fair            4

3              Paid for postage stamps     6                                  29           Envelops and letter heads  6

8              Paid for paper                      1                                 30           Printing address           4

12           Paid for cartage                   6                                   31           Taxi fare to manager   10


petty cash book example


>>> Practice Cash Book Quiz 4.


Awais, Q. M. (2009). Fundamental of Financial Accounting. (2nd, Ed.) Lahore: Waheed Publication.

Bazley, M., Hancock, P., Berry, A., & Jarvis, R. (2001). Contemporary Accounting. (4th, Ed.) UK: International Thomson Business Press.

Ghani, M. A. (1992). Principles of Accounting. (13th, Ed.) Lahore: Pak Imperial Book Depot.

Gupta, R. L., & Radheswamy, M. (2009). Advanced Accountancy (Vol. I & II). New Delhi: S Chand & Co.

Jain, S. .., & Narang, K. N. (2014). Advanced Accountancy. New Delhi: Kalyani Publishers.



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