QS Study

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. This kind of Petty Cash Book is known as Analytical Petty cash Book. This kind enables the businessman to know the information about the amount being spent on each head of petty expense. The credit side is bigger and thus has many columns. For each significant petty expense there is a detach column, and therefore columnar cash book is another name for this petty cash book. These analytical columns helps to know the actual amount spent on each and every type of petty expenses for the particular time. Each petty payment is first entered in the whole payments column, and then recorded in the respective analytical column, so that:

  • the total amount spent on each expenses for a particular period can be simply ascertained by adding up the particular column.
  • only the periodical total of each column is posted to the ledger.
  • the total petty payment for any period can be simply ascertained from the total payments column.

The analytical petty cash book may be designed according to the requirements of the business.