In most cases, the petty cash book is an actual ledger. For this purpose, a petty cashier is appointed by the chief cashier. What is the difference between petty cash book and cash book. Petty cash transactions documentation thesaurus accounts. Sep 30, 2019 petty cash has long been a quick method of providing funds for employee purchases. In this book, separate columns are provided for usual head of expenditure. Petty cash dictionary definition petty cash defined.
Petty definition, of little or no importance or consequence. Petty cash definition in the cambridge english dictionary. However, purchases made using cash are sometimes easily forgotten, difficult to track and ultimately challenging for accounting. Before the rise in the use of credit cards and charge cards, nearly all companies used petty cash accounts to allow employees responsible for purchasing small supplies to do so with minimal hassle. Describes a noun or pronounfor example, a tall girl, an interesting book, a big house. Petty cash is the small cash reserves that businesses keep on the. Mar, 2018 the petty cash book is a formal summarization of petty cash expenditures, sorted by date. These are expenses which are incurred day after day. At times, every business finds it convenient to have small amounts of cash available for immediate payment of items such as delivery charges, postage stamps, taxi fares, supper money for employees working overtime, and other small items. Petty cash is money that is kept in the office of a company, for making small payments. So, the book, wherein day to day petty expenses for a particular period of a business concern, are recorded in chronological order of dates is called petty cash book. It should be used in conjunction with procedural information, resources, and forms, which outline the application of this policy and may be found on the petty cash administration section of the gateway to financial activities website fingate. Petty cash definition is cash kept on hand for payment of minor items.
Top synonyms for petty cash other words for petty cash are loose change, pocket money and small change. Petty cash definition and meaning collins english dictionary. Petty cash book is maintained by the petty cashier. It is a good plan to deposit all cash received and to pay all bills by check, except such small items as are paid from petty cash. The petty cash book is a formal summarization of petty cash expenditures, sorted by date. There might be a petty cash drawer or box in each department for.
Petty cash is a small amount of discretionary funds in the form of cash used for expenditures where it is not sensible to make any disbursement by cheque, because of the inconvenience and costs of writing, signing, and then cashing the cheque. There are two primary types of entries in the petty cash b. Petty cash definition, a cash fund for paying small charges, as for minor office supplies or deliveries. Thus, the book is part of a manual recordkeeping system. Petty cash is money that is kept in the office of a company, for making small payments in cash when necessary. What stream should i take after 10th to be a journalist. Petty cash controls to be tighter tingle and pearson had a grudge against mr petty. Mr criddle told the court that one of thompsons responsibilities as senior business support officer was dealing with the petty cash.
Recording of transaction in cash book and journal with specimen. Cash that a company keeps available for small transactions with customers. Petty cash or a petty cash fund is a small amount of money available for paying small expenses without writing a check. After having her expense claims overruled, she took the money from petty cash. A petty cashier makes a detailed analysis of petty payments and records under suitable heads, i.
These small expenditures are usually paid using coins and currency notes rather than checks. Petty cash book definition of petty cash book by the free. It is another cash book which is maintained, generally, in large business concerns to reduce the burden of main cash book, in which numerous transactions involving petty small amounts are recorded. What are the advantages of the petty cash book answers. Petty cash book can be maintained either in a simple or in analytical way. Petty cash book definition of petty cash book by the. A petty cash book gives management a record of all the little. Feb 08, 2017 petty cash definition including break down of areas in the definition. The petty cash book is ruled in the form of the single column cash book with an amount column and addition oat columns for the more usual classes of expenditure.
Uses of petty cash book its a cash book used to enter daily petty expenses like cost of stationery, postage and xerox copy and so on. Petty cash definition of petty cash by merriamwebster. This is a standard analysed cash book question for junior cert. Petty cash article about petty cash by the free dictionary. Petty cash is a small amount of currency and coins that a company has available to make very small payments instead of requesting and processing a company check. Petty cash financial accounting simple book production.
A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure. The additional analysis columns are used to analyze expenditures as they arise. Petty cash book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc. In most cases, the petty cash book is an actual ledger book, rather than a computer record. The credit side consists of several analysis columns. To make change for customers or patients to reimburse employees for items they have bought for your business. Petty cash definition of petty cash by the free dictionary. Dec 23, 2015 im sure garrick saito would explain it well. Petty cash is an account head under which money is kept in cash in a company. Columnar petty cash book and its preparation process. Petty cash is also the title of the general ledger current asset account that reports the amount of the companys petty cash. Petty cash book is maintained to record small expenses such as postage, stationery, telegram.
Each entry in the petty cash book should include the date, the amount, and what was purchased with the petty cash. Analyzing the definition of key term often provides more insight about concepts. Meaning, pronunciation, translations and examples log in dictionary. Definition of petty cash petty cash or a petty cash fund is a small amount of money available for paying small expenses without writing a check. This video shows the creation and replenishment of petty cash. Petty cash meaning in the cambridge english dictionary. Petty in spanish english to spanish translation spanishdict. The most common way of accounting for petty cash expenditures is to use the imprest system. Petty apartheid synonyms, petty apartheid antonyms. Review your petty cash register before you replenish the petty cash fund. May 28, 2019 require that employees maintain a running petty cash log for every transaction, including receipts. It is another cash book which is maintained, generally, in large business.
Difference betwen petty cash and three column cash book. Petty cash, also known as cash on hand, refers to small amounts of cash kept on hand in a business. Meaning of petty cash book, its importance and advantages. Is there a better way to solve the small expenditure dilemma. Petty cash is typically a reserve of money kept for small day to day purchases. The petty cash book is defined as relatively small amount of cash kept at hand for making quick payments for miscellaneous small expenses in the business. Petty cash book definition, types, format, examples imprest and. A fixed balance is maintained in the account, and it is replenished routinely. Petty cashier is a person, who maintains the petty cash book. Sep 19, 2019 petty cash or the petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check. Heres a list of similar words from our thesaurus that you can use instead.
Petty casha term used to signify small expenditures in actual cash. Meaning of petty cash book a petty cash book is one in which all petty or small payments made through petty cash fund are recorded systematically. Petty cash definition, a cash fund for paying small charges, as for minor office. Find all the synonyms and alternative words for petty cash at synonyms. The petty cash account is used to make small purchases. Companies normally use checks to pay their obligations because checks provide a record of each payment, but they also maintain a petty cash fund to pay for. Heres a list of opposite words from our thesaurus that you can use instead.
What is the difference between cash book and petty cash book. 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. Petty cash book definition the petty cash book is defined as relatively small amount of cash kept at hand for making quick payments for miscellaneous small expenses in the business concern. When an analytical petty cash book is maintained for recording the petty expenses, it will be practically more convenient to consider the petty cash as a separate account and take cheques issued for the petty cash imprest as a debit to petty cash account and all petty expenses paid as credits in petty cash account. 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 format example definition explanation.
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