- What are the five main heads of expenses in a petty cash book?
- Is petty cash an asset?
- Who is petty cashier?
- What are petty cash transactions?
- How many columns are there in petty cash book?
- How does a petty cash book look like?
- What types of expenses are used with petty cash?
- What is the difference between petty cash book and cash book?
- How many types of cash book are there?
- What is petty cash book?
- What is cash book format?
- How do you calculate petty cash book?
- What is petty cash book example?
- How do you do petty cash?
What are the five main heads of expenses in a petty cash book?
The analytical column is provided for each usual head of expense like postage & telegrams, printing & stationary, carriage & cartage, traveling expenses, entertainment expenses, office expenses, sundry expenses, etc..
Is petty cash an asset?
Petty cash is a current asset and should be listed as a debit on the company balance sheet. … When petty cash is used for business expenses, the appropriate expense account — such as office supplies or employee reimbursement — should be expensed.
Who is petty cashier?
the person in an office who is in charge of a small amount of money kept for buying small things when they are needed: The petty cashier keeps receipts for milk, coffee, and so on bought for the office kitchen. … What is the pronunciation of petty cashier?
What are petty cash transactions?
A petty cash transaction is one in which an employee or business owner takes money out of the petty cash fund for the purpose of buying something for the business. When an individual takes money out of the petty cash fund, he notes it in the petty cash ledger.
How many columns are there in petty cash book?
A petty cash book is generally maintained on a columnar basis – a separate column being allotted for each type of expenditure. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it.
How does a petty cash book look like?
Like a general cash book, a petty cash book has a debit and a credit side. 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.
What types of expenses are used with petty cash?
Examples of transactions that a petty cash fund is used for include:Office supplies.Cards for customers.Flowers.Paying for a catered lunch for a small group of employees.Reimbursing an employee for small work-related expenses.
What is the difference between petty cash book and cash book?
The fundamental difference between the Main Cash Book and the Petty Cash Book is that only petty expenses are recorded in the Petty Cash Book. … But in the main Cash Book all receipts (big and small) and large expenses are recorded.
How many types of cash book are there?
threeThere are three common types of cash books: single column, double column, and triple column.
What is petty cash book?
Petty cash is a system that funds and tracks small purchases such as parking meter fees that aren’t suitable for check or credit card payments. A petty cash book is a ledger kept with the petty cash fund to record amounts that are added to or subtracted from its balance.
What is cash book format?
It is also referred to as a three-column cash book format, and it is a most exhaustive form which has three columns of money on both receipt and payment sides and record transactions about the cash, bank, and discounts.
How do you calculate petty cash book?
The difference between the total of the debit items and that of the ‘total column’ on the credit represents the balance of the petty cash in hand. The book in which those small payments are recorded, which are not convenient to record in main Cash Book, is called petty cash book.
What is petty cash book example?
Uses of Petty Cash Book A petty cash is a cash book used to enter all small or petty expenses obtained. For example tea, Xerox copy etc. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and postage.
How do you do petty cash?
Take the cash, buy the item, put the change and the receipt back into the box and only then fill in the voucher ‘cash out’ with the exact amount as per the receipt. Take the cash, buy the item, put the change and the receipt back into the box. Don’t worry about filling in vouchers. Simply fill in the petty cash log.