
When the head cashier pays some amount of cash to a petty cashier for petty expenses then he makes a statement of petty expenses paid by him in the fixed period of time is called petty cash book.
Head Cashier may pay cash in the following methods :
- When Needed
- Fixed amount for a fixed period
- Imprest account
1. When Needed:
In this system, the head cashier pays cash to the Petty cashier when he needs it means he had spent all the cash received before.
2. Fixed amount for a fixed period:
In this system, Head cashier pays a fixed amount to the petty cashier for a fixed time (it may be for a day, a week or a month)
3. Imprest account
This system is generally followed by most of the business concerns. Under this system, the total petty expenses for a particular period are estimated and that amount is advanced by the Head Cashier to the Petty Cashier. This amount is called Imprest Cash.
The Content covered in this article:
Type of Petty Cashbook:
- Simple
- Columnar or Analytical
1. Simple Petty Cash Book:
It is almost similar to a simple cash book. For small-scale businesses, a simple petty cash book is sufficient. The format of this is shown below:

Details of Column in Simple Petty Cash Book: –
1. Debit / Receipts: –
The amount received from the head cashier will be entered in this column.
2. C. B. Folio: –
C. B. folio means cash book folio. The cash payment to the petty cashier record in the main cash book and page no. or entry number of the main cash book written in this column.
3. Date: –
Date of cash receipt and payment will be entered in this column.
4. Particulars: –
Details of the transaction recorded in this column.
5. V. No.:-
V. No. means voucher number. In an accounting system, we have to provide voucher number to each and every single transaction for rechecking or maintaining the record in a systematic way. These numbers will be entered in this column.
6. L. F.: –
L.F. means Ledger folio. The petty cash book is original entry book so we will post these all transaction in the ledger. So, the page no. of the ledger book on which this transaction is recorded will be entered in this column.
7. Credit / Payments.
The payment amount of transaction of all petty expenses met by petty cashier will be recorded in this column.
Example: –
Prepare a petty cash book in the books of M/s Tutors Tips ltd. on the basis of the following transactions.
Date | V. No. | Particulars | Amount |
2018 | |||
Jan 1 | 1(Receipt No.) | Cash received from head Cashier with C.B entry No. 21 | 1,000 |
Jan 3 | 1 | Travelling Expenses paid for the tour of Mr Aman | 80 |
Jan 4 | 2 | Revenue stamps purchased | 20 |
Jan 6 | 3 | Staff tea and snacks expenses paid | 40 |
Jan 7 | 4 | Freight paid on the purchase of goods | 80 |
Jan 9 | 5 | Telephone Expenses Paid | 150 |
Jan 12 | 6 | Revenue stamps purchased | 25 |
Jan 15 | 7 | Freight paid | 30 |
Jan 17 | 8 | Telegram charges paid | 15 |
Jan 20 | 9 | Paid for carriage | 10 |
Jan 21 | 10 | Refreshments Exp of staff | 30 |
Jan 24 | 11 | Stationary expenses | 60 |
Jan 26 | 12 | Paid travelling expenses | 40 |
Jan 29 | 13 | Freight paid on the purchase of goods | 40 |
Jan 31 | 14 | Stationary expenses | 30 |
Solutions:-

2. Columnar or Analytical Petty Cash Book:
For small-scale business, simple petty cash book is sufficient but on a medium or large scale business number of petty expenses increases hence it is desirable to have the separate record for each type of petty expenses. But this one will be able to know which items of petty expenses need to be controlled. The format of it is shown below:

Details of Column in Columnar Petty Cash Book: –
These following all column are same with simple Petty Cash Book
- Debit / Receipts: –
- C. B. Folio:
- Date: –
- Particulars: –
- V. No.:-
- L. F.: –
- Credit / Payments.
8. Name of Expenses: –
In these columns, we have to make the separate column for each separate expenses.
Example: –
We have taken the same example as above and solved it in columnar format.
Solutions:-
