Similarities & Differences Between Cash Book And Petty Cash Book

Cash Book is both a Journal and Ledger that records only cash transactions occurred in a larger scale and in heavy amounts on daily basis. Examples are cash deposited and withdrawn from banks, cheque / check issued for payments, etc while Petty Cash Book is used to record smaller amounts of cash transactions occurred on daily basis. Examples are office expenses, travelling expenses, postage expenses, etc.

Cash book is the main book while petty cash book is in support of the cash book in order to reduce the burden of larger and heavy amounts of cash paid or received.

Similarities Between Cash Book And Petty Cash Book

Both are used to record cash payments and cash receipts transactions.

Both are having opening and closing balances.