Petty cash book :
Some firms actually keep a separate cashbook and petty cash book. The petty cash book deals with Small item of money.some firms have lots of transaction which involved relatively small amount of money. ( example : petrol costs, postage costs, tea and refreshment and so on.).
If these are entered in the cashbook then it would quickly become cluttered up with entries for small amount of money. To stop this, some firms keep a petty cashbook. Which deals with these items.at the end of each month the monthly totals can then be transferred to the main cash book. This also has the other advantage of allowing another member of staff the responsibility of dealing with petty cash book alone and this frees up time for the main cashier of the firm to deal with the main Cash book.some very large firm may actually use the petty cash book for dealing with all cash items of expenditure.the main cash book would then only be used for bank transaction.
If these are entered in the cashbook then it would quickly become cluttered up with entries for small amount of money. To stop this, some firms keep a petty cashbook. Which deals with these items.at the end of each month the monthly totals can then be transferred to the main cash book. This also has the other advantage of allowing another member of staff the responsibility of dealing with petty cash book alone and this frees up time for the main cashier of the firm to deal with the main Cash book.some very large firm may actually use the petty cash book for dealing with all cash items of expenditure.the main cash book would then only be used for bank transaction.
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