The pages of this book are vertically divided into two equal parts. Format of the petty cash book bookkeeping debits and credits. Simple cash book format design for quick money tracking. The chief cashier is relieved from the cumbersome work of petty cash disbursement. Besides maintaining a main or general cash book, many companies also maintain a small cash book known as petty cash book to record small day to day expenditures of the business 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. This format is an excellent way to monitor the current amount of petty cash remaining on hand. Accounting for petty cash explanation, related controls. For example, if you bought a screw at the corner hardware store, you might. The petty cash book is a formal summarization of petty cash expenditures, sorted by date. To set up and maintain a petty cash fund, you must fund it with monies from your business. Students taking software exams or students preparing for excel will find the file very useful.
After reading this article you will learn about the format of preparing cash book. Recording of transaction in cash book and journal with. Cashbook is a financial journal which contains all the cash receipt and cash payments including the deposit in bank and withdrawal from the bank. A ctually of much quantity of charge payments for daily charges of offices or, therefore in the most company, petty cash transactions keep in separate book as name petty cash book how to use cash book. This is ideal if you dont want to use a computer to keep your cash book and are happy to do it the good oldfashioned manual way. Simple cash book excel template microsoft excel templates. 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. The receipts are recorded in the dr side and the payments are recorded in the cr side of the cash book.
Then you can download this petty cash fund closure reconciliation template as it is available in the pdf format so you can get to edit it and replace the details provided with your colleges account details. In most cases, the petty cash book is an actual ledger book, rather than a computer record. The format of a triple column cash book is given below. Click here to download simple cash book excel template. It is a unique book of account that combines journal and ledger. It is another cash book which is maintained, generally, in large. 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.
Read on for more information on petty cash book advantages, format, systems, and example. To verify the accuracy of the cash book, it should be balanced daily which may be shown in the cash book with red pencil. Youll also want to purchase a lock box for the cash and receipts. Most businesses use petty cash for this, monitoring payments in a petty cash book. Such disbursements are a common problem in petty cash, where there is a high risk of fraud. Every time a payment is made through petty cash, it is recorded in the petty cash register usually by the cashier. Click here to download all accounting excel templates for rs 199. Petty cash is a system that funds and tracks small purchases such as parking meter fees that arent suitable for check or credit card payments. The cash book can be maintained properly as petty transactions are maintained separately. A separate column is allotted for each type of expenditure. Use these cash book format instructions to make your very own cashbook spreadsheet using plain paper or a school exercise book. Petty cash book is maintained to record small expenses such as postage, stationery, telegram. 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. Documenting transactions is the way a business documents business expenses for tax purposes.
Cash book contains cash transactions passing into and out of a business. Cash book definition, types accounting format of cash book. The first row is for the company name and second for the title of the template. Meaning of petty cash book, its importance and advantages. All the transaction which is recorded in the cash book has the two sides i. 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 these are expenses which are incurred day after day. For this purpose, a petty cashier is appointed by the chief cashier. Adams petty cash 2part carbonless receipts book, 2. Petty cash book helps to keep the main cash book in a compact form because numerous entries for small and petty items are recorded in the petty cash book itself. Thus, the book is part of a manual recordkeeping system. A day bookcumledger kept for making entry of the cash transactions as well as posting to the cash and bank accounts is called cash book. There are two primary types of entries in the petty cash b. Usually the deposits into bank accounts maintained by a business firm, withdrawals from such accounts and cheque payments are also recorded in the cash book.
The specimen performa of a simple cash book is given as follows. For an organization to manage the petty cash there should be a cash report that can document all the transactions and the balance involved. As the petty cashier cannot draw as and when he likes, it prevents unnecessary accumulation of cash in his hand thus the chances of defalcation of cash are minimised. Download this petty cash reconciliation sheet and prepare the balance sheet. Many businesses keep a petty cash fund to pay for small daily business expenditures such as office supplies. 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. To account for petty cash, create a transaction log that covers the date, the person who used the petty cash, a description of the transaction, and any other deposits or expenses. 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.
Cash book is the one in which all the cash receipts and cash payments including the funds that are deposited in the bank and funds which are withdrawn from the bank are recorded according to the date of the transaction. Here all the cash and bankrelated transactions are recorded along with the discount on sales or purchase of goods. Each employee wishing to make a purchase should go through this representative, rather than leaving the. The cash book is balanced in the same way as a ledger account. The triple column cash book is a compact form of cash book in which all the three columns, i. The advantages of petty cash system enumerated are as follows. Simple steps to create dynamic petty cash book with ms excel.
As the petty cashier has to account for his expenses, before he can draw further sums, the petty cash book remains up to date. In general, petty cash is one of big volume account in any business. Want to prepare a petty cash reconciliation form that is the receipt for all the expenditures from the college petty cash account. Totals are carried forward from page to page until the end of the periods. You may continue this throughout the notebook upon starting the petty cash book or rely on the person who begins a new page to continue the format. Download petty cash book in excel file in xlsx format. The additional analysis columns are used to analyze expenditures as they arise.
Have our partners at excelchat fix your formulas, 247. You can use this record for tracking and preparing balance sheet for financial record. Cash book records all receipts of and payments in cash. Petty cash balance after reimbursement reverts to back to the level of the float. The difference between the total of the debit items and that of the total column on the credit represents the balance of the petty cash in hand. Read this article to learn about the recording of transactions in cash book and journal.
Petty cash book definition, types, format, examples imprest and. The amount spent by the petty cashier is reimbursed, thus making up. The cash on hand balance amount is displayed on the righthand side. How to create petty cash account with excel youtube. A single column cash book always shows debit balance debit side exceeding credit side because more cash cannot be paid than what we have. The simplest way to do this is to write a check to petty cash using your business checking account. When the cashier requests for reimbursement of petty cash, he creates a petty cash voucher detailing the payments made through petty cash during the. 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 book is a readytouse excel template to systematically record and manage your petty or small daily routine payments. Cash book is a book of original entry in which transactions relating only to cash receipts and payments are recorded in.
Youll need to nominate a petty cash manager, typically an accountant, bookkeeper or other supervisor to oversee operations and collect receipts, if necessary. Petty cash book can be expressed as a formal summarization of the petty cash expenditures which refers to the daytoday normal. In this petty cash form template, you can organize. A three column cash book or treble column cash book is one in which there are three columns on each side debit and credit side. All the receipts in cash are recorded on the left side of. In petty cash book, payments for petty items are recorded. Columnar petty cash book and its preparation process. The cash book is a chronological record of the receipts and payments transactions for a business. This is the simplest form of cash book and is used in businesses where payments are made and received mostly in cash and where usually no cash discount is received or given. 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. This petty cash log template allows you to easily modify the heading labels as needed and contains working formulas in the balance column in case you want to track the petty cash log using the spreadsheets itself, rather than printing a blank form.
One is used to record cash transactions, the second is used to record bank transactions and third is used to record discount received and paid. Petty cash book format example definition explanation. Petty cash book is maintained by the petty cashier. The most important part of a petty cash system is the documentation of each transaction. This template includes date, receipt, description, deposits, and withdrawals. Petty cash book can be maintained either in a simple or in analytical way. The cash book is updated from original accounting source documents, and is therefore a book of prime entry and as such, can be classified as a special journal unlike other special journals such as the purchases journal or the sales journal, the cash ledger book. Petty cash book is the accounting book that is used for the purpose of recording the petty cash expenditure i. By keeping track of all petty cash transactions no matter how petty you have records to back up deductions for those small business expenses. Single column cash book definition, format and examples. The single column cash book resembles a t shaped cash account in almost all respects.
The following cash book examples provide an outline of the most common cash books. A petty cash book is a ledger kept with the petty cash fund to record amounts that. Download petty cash book excel template exceldatapro. Also, find out its uses and functions in any contemporary business setup. Fixed amount is paid to the petty cashier along with the imprest system. 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. 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. Read this article to learn about the following types of cash book and its preparation, i. This is great for not for profit clubs and groups, or small side biz activities such. When a trader keeps a bank account it becomes necessary to record the. Petty cash book definition, types, format, examples. Large businesses maintain petty cash book to reduce the burden of main cash book. Definition, explanation, format and system of petty cash.
415 52 1492 341 745 546 975 757 1319 582 5 78 1354 1076 759 1488 1015 1156 247 572 490 1389 1055 1285 98 1183 402 1140 520 1096 187 428 361 947 1499 681 1015 1172