Akka Essay

838 Words4 Pages
Module 6 Petty cash book Definition: In almost all businesses, it is found necessary to keep small sums of ready money with the cashier or petty cashier for the purpose of meeting small expenses such as postage, telegrams, stationary and office sundries etc. The sum of money so kept in hand generally termed as petty cash and book in which the petty cash expenditures are recorded is termed as petty cash book. Meaning of Petty cash book: all petty cash transactions are maintained in these books, the person who maintains theses transaction is called petty cashier, this book is maintained so as to minimize the work of the cashier on petty cash transactions for example: refreshments, postage, cartage etc. Types of petty cash books 1. Simple petty cash book: all petty cash transactions are recorded 2. Analytical petty cash book Reason for maintaining petty cash book : In large business houses, the cashier has to handle every day a large number of receipts and payments and if in addition to this he is further deals with petty cash payments, his work becomes hectic, Besides, it is most common to find with large commercial establishments that all receipts and payments are made through bank. Since expenses like postage, telegrams, traveling etc, cannot be made by means of cheques, the maintenance of a small cash balance to meet these petty payments becomes all the more necessary. The posting from the petty cash book to the respective accounts in the ledger are made directly in total at the end of every month or any other fixed period. The Imprest System: The more scientific method of maintaining petty cash so for introduced into practice is the imprest system. Under this system a fixed sum of money is given to the petty cashier to cover the petty expenses for the month. At the end of a month the petty cashier submits his statement of petty expenses to the chief

More about Akka Essay

Open Document