Petty Cash Book

Definition of Petty Cash Book:

The petty cash book is a book of first entry and a ledger kept exclusively for small expenses, called petty cash. This book is similar to the cash book.

Benefits of Petty Cash Book:

An organisation using the petty cash book in addition to the main cash book will deserve the following benefits;

1. Minor expenses, which are usually more in number, are taken to the petty cash book.

2. When the petty cash book is kept, the job of the main cashier is reduced.

3. The time wasted in posting minor expenses to the ledger daily is saved

4. The imprest system used for maintaining the petty cash book is an in-built check system. 

A petty cashier is responsible for handling the petty cash book. Payments made by the petty cashier are supported by a petty cash voucher, which shows the signature of the person receiving the money and the reason for the payment.