If there are many transactions, the petty cashier may only choose the most common expenses to be featured in different columns. It is the most advantageous method of recording petty cash payments. Recording of transaction in cash book and journal with. The analytical petty cash book and the imprest system quiz. Jan 06, 2021 advantages of analytical petty cash book. Advantages of analytical petty cash book petty cash is a comprehensible and common method of paying for business operating cost. The analytical petty cash book and the imprest system. Analytical petty cash book also known as columnar petty cash book is dissimilar from the easy petty cash book in the logic that in this kind of petty cash book, an. The main advantages of petty cash book publish your article. Nov 26, 2018 write up the analytical petty cash book and draft the necessary journal entries for the payments made. Other than the normal petty cash book, which resembles a normal cash book, there are two other types of petty cash books.
In analytical petty cash book, a separate column is provided for different heads of payments and one column for total payments. Analytical petty cash book class 11 accounts accounts adda video 42special purpose books cash book class 11 chapter 10chapter 10 accounts acc. The analytical petty cash book and the imprest system springerlink. It is called analytical cash book because it analyses the expenses into a number of grouped expenses. In large business concerns, the petty cash book is maintained in columnar or analytical form, with a separate column for each usual item of expense and a column for total. The advantages of analytical petty cash book is given below. Ncert solutions for class 11 financial accounting recording. Mar 17, 2018 money received from head cashier is recorded on debit side and payments are recorded on credit side. Petty cash book explanation, format, example, ordinary. In the petty cash book, the extreme left hand column records receipt of total cash for a specified period. There is a column of date and next is the column of respective numbers of vouchers. All petty payments are to be classified into different heads and different columns are maintained.
Nov 27, 2019 the petty cash book is not part of the double entry bookkeeping system, and is used simply to record movements on the petty cash imprest fund. Explain why many organisations use a petty cash book. The is only one money column on the debit side and all sum received from time to time by the petty cash ier from the chief cashier are entered in it. When petty cash is easy to get to employees, it is a suitable way to pay for little purchases. Prepare an analytical petty cash book on the impreset system from. For recording the expenses in this book whole of the petty expenses are classified into few heads and a decision is taken as to which of the petty expenditure is to be recorded under which.
Many expenses of small nature are recorded in petty cash book. In a business operating this type of cash book, small cash payments are usually made out of petty cash. Analytical and imprest system of petty cash book your article library. Petty cash book template excel software accountant. Mar 25, 2018 simple petty cashbook example solution 2. From the following information prepare an analytical petty. Reason is that here petty cash book is considered to be a memorandum book only. As in the case of any other cash book, petty cash book also has the debit side and the credit side. The credit side consists of several analysis columns. A column for sundries is usually added for miscellaneous payments. Analytical petty cash book class 11 accounts accounts adda video 42special purpose books cash book class 11 chapter 10chapter. The cash book containing two money columns cash column and bank column on both sides for recording cash and bank transactions is called a double column cash book. A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure. Petty cash book with imprest system simple and tabular forms.
Petty cash book explanation, format, example, ordinary and. While recording the transactions in petty cash book if all the expenses are analyzed and entries are recorded in cash book on the basis of this analysis. It also saves time in posting each item of petty payments unnecessarily in the ledger. When the petty expenses are recorded in the total payment column, same amount is also recorded in the appropriate expense column. Nowadays, many businesses have only a small number of sales that are paid for with cash and credit cards, cheques, and direct transfers are used. From the following information, show how his petty cash book would appear for the week ended 12th september, 2017. Ruling of analytical petty cash book while maintaining a. The maintenance of petty cash book does not require specialised knowledge of accounting. Lecture 5 the analytical petty cash book and the imprest system every business has a number of transactions of very small value which, were they all recorded in the cash book, would only serve to make it more difficult to identify the important transactions that businesses need to keep a close eye upon. It also saves time posting each item of petty payments unnecessarily in the ledger. Generally petty cash book is maintained on imprest system. Every payment made by the petty cashier is entered on this side twice firstly it is recorded in the total column. Money received from head cashier is recorded on debit side and payments are recorded on credit side.
Enter the following transactions in an analytical petty cash. Petty cash book definition, types, format, examples. Record the following transactions in an analytical petty cash book and balance the same. The money columns towards the right hand side show total payments for various purposes. The petty cashier will record this amount on the debit side of the petty cash book while the chief cashier will record the same amount on the credit side of the main cash book. Recording of transactions in a petty cash book is easy.
From the following information, prepare an analytical petty cash book. An analytical petty cash book, on the other hand, is a cashbook which contains only one amount column on the receipt side and a number of different columns on the payment side for the head of expenses. When petty cash is easy to get to employees, it is a suitable way to pay for little purchases the advantages of analytical petty cash book are given below. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it. 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. How to prepare analytical petty cash book in excel spread. It is also called as analytical petty cash book, as it analysis the payments under different heads separately. The person appointed to carry out the duties of handling and recording the petty cash is usually a junior member of staff known as the petty cashier. Recording of transactions ii petty cash book solutions eduxir. This type of cash book will allow managementproprietors to tell at a glance the total amount spent on each of these common expenses. This kind of petty cash book is known as analytical petty cash book. This type of petty cash book is known as analytical petty cash book. Sep 16, 2020 enter the following transactions in iyyappans petty cash book with analytical columns under imprest system.
Major l earnings outcomes preparation of petty cash bookin this video ive explained about petty cash book which is a ledger kept with the petty cash fund t. Write out an analytical petty cash book from the following transactions. Petty cash is a comprehensible and common method of paying for business operating cost. Petty cash book with imprest system simple and tabular. Recording of transaction in cash book and journal with specimen. Not important petty cash a book of original entry, where small, usually insignificant amounts of money are recorded. The debit side is smaller and has very infrequent entries because cash receipt by the petty cashier is mainly from the cashier at the beginning or close of a specified period. Also, it will facilitate the accountant or the organization to evaluate the expenses under the dissimilar various heads. Controllimitkeep track of petty cash expenditure the cash remaining and the vouchers received should equal the imprest can help to reduce fraud or other suitable advantage.
Using a petty cash system allows a junior member of staff to have some responsibility. For smallscale business, simple petty cash book is sufficient but on a medium or large scale business number of petty expenses increases hence it is desirable to have the separate record for each type of petty expenses. Nov 04, 2015 any cash which the petty cashier receives is recorded on the debit receipt side and any cash which he pays out is recorded on the credit side of the cash column an analytical petty cash book has two sides is used for recording receipts of the cash and credit side is used for recording payments types of petty cash book. Compile a cash book with cash and bank columns from the following transactions. Analytical petty cash book is a book in which there is only one amount column on the debit side and a number of columns on the credit side for different heads of expenses. Prepare analytical petty cash book from the following particulars.
Prepare analytical petty cash book from the following transactions. In an analytical petty cash book, there exists separate heads for different petty expenses, which makes recording much easier. The advantages of analytical petty cash book are given below. As head cashier checks the accounts of previous month and gives advance for the coming month, thus, errors if any are reduced. Here you can publish your research papers, essays, letters, stories, poetries, biographies and allied information with a single vision to liberate knowledge. Considered as the most beneficial method of recording petty cash payments. Analytical petty cash book class 11 accounts accounts. Single column cash book, double column cash book, treble column cash book. In such a cash book there are preexisting columns for the usual expenses that recur quite frequently for an organization. Analytical petty cash book considered as the most beneficial method of recording petty cash payments. A simple petty cash book is one in which there is one common column for date and particulars, for both the receipts and payments. Advantages and disadvantages of analytical petty cash book. Petty cash book download a template you can start using today. Jan 05, 2020 an analytical petty cash book is one in which there is one amount column on its debit side and a number of columns on its credit side for different heads of expenses.
Like columnar petty cash book, it also contains many money columns in the credit side and one money column in the debit side and a particular column and a date column are also similar to that of the columnar or analytical petty cash book. Petty cash book format example definition explanation. Recording of transactions ii petty cash book solutions. The fundamental difference between the main cash book and the petty cash book is that only petty expenses are recorded in the petty cash book. For recording the expenses in this book, whole of the petty expenses are classified into few. Format of analytical petty cash book in big business apprehensions, the petty cash book is maintained in analytical form, with a detach column for each standard item of expense and a column for total. Recording in a petty cash book does not require formal knowledge of accounting principles and techniques. So if an organization has daily expenses for food, stationery, postage, etc. As the petty expenses are recorded by petty cashier hence the labor. This type enables the businessman to know the information about the amount being spent on each head of petty expense. When petty expense is recorded in total payment column, the same amount is recorded in the relevant petty expense column. In module 12, which covered the bank cash book, the advantages of paying all cash and cheques into the bank intact were evident.
You can download the simple petty cash ledger we created and adapt it for your own use to get started. Petty cash book definition, types, format, examples imprest and. Grewal 2018 for class 11 commerce accountancy chapter. Every business has a number of transactions of very small value that would clutter the cash book. Dec 15, 2020 the petty cash book is a useful control over petty cash expenditures, since it forces the petty cash clerk to formally record all cash inflows and cash outflows. Analytical petty cash book class 11 accounts accounts adda.
Ts grewal accountancy class 11 solutions chapter 7 special. These small expenditures are usually paid using coins and currency notes rather than checks. These small cash payments are recorded in a separate book, known as a petty cash book. While recording the transactions in petty cash book if all the expenses are analyzed and entries are recorded in cash book on the basis of this analysis such petty cash book is called analytical petty cash book. The petty cash book usually consists of a columnar book with one side used to record the original receipt of cash to establish the fund, and the other to analyse payments by expense categories, such as. The analytical petty cash book has a separate column for each item on the credit side while the debit side also see overview of double entry accounting contain one column for all the cash received from the cashier.
Record the following transactions in an analytical petty cash book. It relieves the main cash book of numerous entries for minor payments. Analytical petty cash book or columnar petty cash book is different from the simple petty cash book in the sense that in this type of petty cash book, an analytical presentation of cash payment is made. Just like the cash book, the petty cash book is both a book of original entry and a ledger. In this type, a separate column for each petty expense is provided on credit side. In large business concerns, the petty cash book is maintained in columnar or analytical form, with a separate column for. Click here to get an answer to your question what is an analytical petty cash book. Jul 24, 2018 analytical petty cash book or columnar petty cash book is different from the simple petty cash book in the sense that in this type of petty cash book, an analytical presentation of cash payment is made. One major advantage of this system is that it saves time. Required a state one advantage of the imprest system of petty cash. Sri r maintains a columnar petty cash book on the imprest system.
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