Petty Cash Book | Example | Subsidiary Books

Petty Cash book feature image 1 - Petty Cash Book | Example | Subsidiary Books

What is Petty Cash Book?

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 :

  1. When Needed
  2. Fixed amount for a fixed period
  3. 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.

Type of Petty Cash book:

  1. Simple
  2. Columnar or Analytical

1. Simple Petty Cash Book:

It is almost similar to a simple cash book. For small-scale business, simple petty cash book is sufficient. The format of this is shown below:

Simple petty Cash book Format  - Petty Cash Book | Example | Subsidiary Books
Simple petty Cash book Format

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 petty cashier entry in the main cash book. Page no. and entry number in 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(Recpt 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:- 

Simple petty Cash book Example solution - Petty Cash Book | Example | Subsidiary Books
Simple petty Cash book Example – solution

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:

Columnar or Analytical petty column Cash book - Petty Cash Book | Example | Subsidiary Books
Columnar or Analytical petty column Cashbook

Details of Column in Columnar Petty Cash Book: –

These following all column are same with simple Petty Cash Book

  1. Debit / Receipts: –
  2. C. B. Folio: 
  3. Date: –
  4. Particulars: –
  5. V. No.:- 
  6. L. F.: –
  7. 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:- 

Columnar petty Cash book Example solution - Petty Cash Book | Example | Subsidiary Books
Columnar petty Cash book Example – solution
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