What is Petty Cash Book - Format - Explanation - Example

The Book which is maintained for recording Small amount of Cash Paid. Mostly, the amount of Cash used for those Expenses which are incurred for running day to day expenses. Examples are Stationary Expenses, Travelling Expenses, etc. It is the part of Main Cash Book to reduce the burden of larger and huge amount of Cash Transactions. Only Cash Received from Chief Cashier is the Revenue that is recorded in it, otherwise, only Cash Payments are recorded in it.

Petty Cash Book is a type of Special Journal.

Petty Cash Book Format

The format of Petty Cash Book is almost the same as that of Cash Book. There is a Debit Side And a Credit Side.

You Can Also Find Out, "Rules of Debit And Credit

Petty Cash Journal Entries

Let Us Prepare Petty Cash Book for Company ABC For September 2018 With the help of an Example. Suppose that:

2018

September

Sep. 1. Cash Received from Chief Cashier Rs. 10000

Sep. 2. Paid Office Expenses Rs. 200

Sep. 3. Paid Postage Rs. 300

Sep. 5. Paid Travelling Expense Rs. 500

Sep. 7. Paid Repair Expenses For Lighting Rs. 700

                                                                ABC Company

                                                                Petty Cash Book

                                                                For September, 2108

Amount     Date     Particulars       Total  Office Exp  Postage  Travelling  Building Exp.
Received

                  2018

   10000     Sep.1 Cash Received     

                  Sep. 2 Office Exp. a/c      200       200

                  Sep. 3 Postage Exp. a/c   300                        300

                  Sep. 5 Travelling Exp. a/c 500                                       500

                  Sep. 7 Building Exp. a/c    700                                                          700                                                                    ________
                                                               
                                                            1700
                                         
                                             
                                 Balance c/d        8300 

________                                        _________

10000                                                  10000
________                                        __________
________                                        __________


The Balance Carried (Balance c/d) will be the Beginning Balance in the next Month.

So, Petty Cash Book is necessary in larger organizations where large amount of Cash Transactions takes place on daily basis.