Petty Cash Book | Accountancy KnowledgeBesides maintaining a main or general cash book , many companies also maintain a small cash book known as petty cash book to record small day to day expenditures of the business. Petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel, newspapers, cleaning, pins, and causal labor etc. These small expenditures are usually paid using coins and currency notes rather than checks. The person responsible for spending petty cash and recording it in a petty cash book is known as petty cashier. He, therefore, usually delegates the responsibility for handling small day to day cash transactions to a bookkeeper, receptionist or some other reliable staff member. Like a general cash book, a petty cash book has a debit and a credit side.
TS Grewal Accountancy Class 11 Solutions Chapter 7 Special Purpose Books I Cash Book
The returns inwards day book would contain:. P Bahadur. If the difference is unexplained, complete a voucher stating the unexplained amount. Tally Practice Tests.Going concern. Wow, thanks Reply. Required staff training. The firm can spend more time on writing up entries.
Discount received. Answer : Enact a procedure whereby the cashier replenishes the amount of cash in each petty cash box, as requested by the petty cash custodians. Withdrew Auestions from Bank. Totalling up the bank and cash columns at the end of each month.
Are you a commerce graduate? Are you willing to work in the banking sector?
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Petty Cash Interview Questions And Answers
The petty cash book is a formal summarization of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Thus, the book is part of a manual record-keeping system. There are two primary types of entries in the petty cash book, which are a debit to record cash received by the petty cash clerk usually in a single block of cash at infrequent intervals , and a large number of credits to reflect cash withdrawals from the petty cash fund. These credits can be for such transactions as payments for meals, flowers, office supplies, stamps, and so forth. A somewhat more useful format is to record all debits and credits in a single column, with a running cash balance in the column furthest to the right, as shown in the following example.
Purchased goods from Surya Kant. Question 1. It is an important internal control for fraud prevention. This format is an excellent way to monitor the current amount of petty cash remaining on hand.
Received commission. Thus, the book is part of a manual record-keeping system. Received from Mohan. Increased accuracy of entries.Petty cash is a small amount of cash on hand that is used for paying small amounts of owed instead of giving a cheque. Chartered accountant Interview Questions Question. Tally Practice Tests. All receipts are recorded on eptty debit side and all payments are recorded on the credit side of petty cash book by the petty cashier.
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