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Thursday, May 17, 2012

Types of Petty Cash Book

Simple Petty Cash Book
Simple petty cash book is same as single cash book where only one amount column is maintained in each side of such cash book. Amount received from head cashier is entered on the debit side of cash book and all the petty payments made by petty cashier are recorded in  credit side. Finally, the balance amount is found out.

Analytical Petty Cash Book
Under this system of cash book, a separate column is provided for each type of petty expense in the credit side of cash book. However debit side columns are same as simple column cash book. Number of columns of such petty expenses depends upon the volume of petty transactions. When there is large number of transactions, only most common petty expenses are assembled in the 'miscellaneous expenses' column.

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