The analytical petty cash book and the imprest system 1 the analytical petty cash book and the imprest system. Since the petty cash book analysis the expenses into a number of heads of expenses, the name given to it is analytical petty cash book. The receipt column is used to record the opening balance and the amount received from the head cashier. Recording of transaction in cash book and journal with specimen. Considered as the most beneficial method of recording petty cash payments. Petty cash book and types of petty cash book part 1 simple, analytical for class11th in hindi duration. An analytical petty cash book is one in which there is one amount column in its debit side and a number of columns on its credit side for different heads of expenses. 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. Head cashier may pay cash in the following methods. The credit side is bigger and thus has many columns.
Ncert solutions for class 11 financial accounting recording. Analytical petty cash book or columnar petty cash book is different from the simple petty cash book in the sense that in this type of petty cash book, an analytical presentation of cash payment is made. You can find the questionsanswerssolutions for the chapter 4 of cbse class 11 accountancy in this page. For this purpose, a petty cashier is appointed by the chief cashier. In such a cash book there are preexisting columns for the usual expenses that recur quite frequently for an organization. In an analytical petty cash book, there exists separate heads for different petty expenses, which makes recording much easier. One major advantage of this analytical system is that it saves time. Analytical cash book class 11 accountancy cash book youtube.
A column for sundries is usually added for miscellaneous payments. Write up the analytical petty cash book and draft the necessary journal entries for the payments made. As only totals of various columns are to be posted in the. While recording the transactions in petty cash book if all the expenses are analyzed and entries are recorded in cash book on the basis of this analysis such petty cash book is called analytical petty cash book. In this type, a separate column for each petty expense is provided on credit side. When the head cashier pays some amount of cash to a petty cashier for petty expenses then he makes a statement of petty expenses paid by him in the fixed period of time is called petty cash book. These are expenses which are incurred day after day. While recording the transactions in petty cash book if all the expenses are analyzed and entries are recorded in cash book on the basis of this. When petty cash is easy to get to employees, it is a suitable way to pay for little purchases the advantages of analytical petty cash book are given below. The petty cashier of john and james company paid cash for the following expenditures during march 2018. Since the petty cash book analyses, the expenses into a number of heads of expenses, the name given to it is analytical petty cash book.
This kind of petty cash book is known as analytical petty cash book. The credit side consists of several analysis columns. Like columnar petty cash book, it also contains many money columns in the credit side and one money column in the debit side and a particular column and a date column are also similar to that of the columnar or analytical petty cash book. Major l earnings outcomes preparation of petty cash book in this video ive explained about petty cash book which is a ledger kept with the. Since the petty cash book analysis, the expenses into a number of heads of expenses, the name given to it is analytical petty cash book.
In big business apprehensions, the petty cash book is maintained in analytical form, with a detached column for each standard item of expense and a column for. The keeping of the book is not different from the keeping of the main cash book. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and. 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. Advantages of analytical petty cash book petty cash is a comprehensible and common method of paying for business operating cost. 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.
In module 12, which covered the bank cash book, the advantages of paying all cash and cheques into the bank intact were evident. How to prepare analytical petty cash book in excel spread sheet. The petty cash book will be maintained by a separate cashier known as petty cashier in the accounting field. The simple petty cash book has only two amount columns. Enter the transaction on the debit or credit side and it will automatically calculate the cash on hand for you. Just as in the main cash book, all payments are credited in the petty. The additional analysis columns are used to analyze expenditures as they arise. At the end of the month petty cash book receipt and payment column is totaled and balanced here total payments are balance cd i. It also saves time in posting each item of petty payments unnecessarily in the ledger. This type enables the businessman to know the information about the amount being spent on each head of petty expense. This type of cash book will allow managementproprietors to tell at a glance the total amount spent on each of these common expenses. In such a cash book there are pre existing columns for the usual expenses that recur quite frequently for an. 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. In module 12, which covered the bank cash book, the advantages of paying all cash and cheques into the.
This type of petty cash book is known as analytical petty cash book this type of cash book will allow managementproprietors to tell at a glance the total amount spent on each of these common expenses it also saves time posting each item of petty payments unnecessarily in the ledger. An analytical petty cash book is employed by a large concern having a number of transactions of petty amount such petty. 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. A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure. Advantages and disadvantages of analytical petty cash book. This petty cash book is prepared on the same lines of the simple petty cash book. A separate column is allotted for each type of expenditure. Explanation of columns in the analytical petty cash book. The keeping of the book is not different from the keeping of the main cash book the amount paid out by the chief cashier is credited in his cash book to complete the double entry. Nov 26, 2018 write up the analytical petty cash book and draft the necessary journal entries for the payments made.
The advantages of analytical petty cash book are given below. We hope the ts grewal accountancy class 11 solutions chapter 7 special purpose books i cash book help you. Imprest system petty cash book is quite helpful when the firm uses analytical petty cash book, wherein the book has one column to track the receipt of the amount, from the chief cashier and several other columns to write down expenses under the. Such as travel expenses for employees, postage expenses hospitality. An analytical petty cash book is one in which there is one amount column on its debit side and a number of columns on its credit side for different heads of expenses. To analyzing the individual payments you have to just total individual expenses columns. It is the most advantageous method of recording petty cash payments. What has probably happened in this scenario is we credit the petty cash e. Analytical petty cash book an analytical petty cash book is one in which there is one amount column in its debit side and a number of columns on its credit side for different heads of expenses. These small cash payments are recorded in a separate book, known as a petty cash book. Petty cash book is maintained to record small expenses such as postage, stationery, telegram. The balance left in the petty cash book indicates the amount remaining with the petty cashier. Analytical petty cash book an analytical petty cash book is one which there is one amount column on its debit side and a number of amount columns on its credit side for different heads of expenses.
Recording in a petty cash book does not require formal knowledge of accounting principles and techniques. Ppt the analytical petty cash book and the imprest. 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. There might be a petty cash drawer or box in each department for. Petty cash book format example definition explanation.
Petty cash book definition, types, format, examples. Petty cash book explanation, format, example, ordinary and. Amount received by the petty cashier for meeting petty expenses and the opening balance of petty cash will be recorded in this column. The only difference is that the payments side ruled into suitable column for recording expenses that are repetitive in nature. Columnar or analytical petty cash book with problem hindi. Petty cash book template excel software accountant.
Totals are carried forward from page to page until the end of the periods. Save my name, email, and website in this browser for the next time i comment. Petty cash book with imprest system simple and tabular. Download citation on researchgate the analytical petty cash book and the imprest system in module 12, which covered the bank cash book, the. One major advantage of this system is that it saves time. Petty cash book free doubts and solutions topperlearning. The analytical cash book is a book kept by a petty cashier. Petty cash is a comprehensible and common method of paying for business operating cost. Petty cash book meaning, cash book vs petty cash book. A petty cash log is a document to record all the important financial information. Petty cash book definition, types, format, examples imprest and.
Cash book contains individual columns for each expense every small payment is recorded on the credit side. When petty expense is recorded in total payment column, the same amount is recorded in the relevant petty expense column. Analytical cash book class 11 accountancy cash book by anjali is an online education portal that provides interactive study material for students of classes 6th to 12th for. One of the total payment column and second in one of the analytical amount columns. When your organization has an actual book for petty expenses. The analytical petty cash book and the imprest system. For smallscale business, simple petty cash book is sufficient but on a medium or large scale business number of petty expenses increases hence it is desirable to have the separate record for each type of petty expenses.
The is only one money column on the debit side and all sum received from time to time by the pettycashierfrom the chiefcashierare entered in it. So if an organization has daily expenses for food, stationery, postage, etc. Aug 12, 2017 analytical cash book class 11 accountancy cash book by anjali is an online education portal that provides interactive study material for students of classes 6th to 12th for. As in the case of any other cash book, petty cash book also has the debit side and the credit side. Meaning, types and importance of petty cashbook srd law. Also, it will facilitate the accountant or the organization to. An imprest system of petty cash means that the general ledger account petty cash will remain dormant at a constant amount. When petty cash is easy to get to employees, it is a suitable way to pay for little purchases. 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. The analytical petty cash book may be designed according to the requirements of the business. A petty cash book can either be a simple petty cash book or an analytical petty cash book. Recording of transaction in cash book and journal with.
A petty cash is a cash book used to enter all small or petty expenses obtained. Recording of transactions ii petty cash book solutions this page contains the cbse accountancy class 11 chapter recording of transactions ii notes. Ts grewal accountancy class 11 solutions chapter 7 special. Prepare an analytical petty cash book from the following information provided by mr. In large business concerns, the petty cash book is maintained in columnar or analytical form, with a separate column for each usual item of expense and a column for total. The analytical petty cash book the analytical cash book is a book kept by a petty cashier. The debit side is smaller and has very infrequent entries because cash receipt by the petty cashier is mainly from the cashier at the beginning or close of a specified period. Recording of transactions in a petty cash book is easy. In the other example, if an entry is a debit in the cash book, our asset has increased bank and therefore we have received money from somewhere. Analytical cash book class 11 accountancy cash book. Recording of transactions ii petty cash book solutions. All petty payments are to be classified into different heads and different columns are maintained. In a business operating this type of cash book, small cash payments are usually made out of petty cash.
Petty cash book explanation, format, example, ordinary. Analytical petty cash book solution play accounting. Other than the normal petty cash book, which resembles a normal cash book, there are two other types of petty cash books. 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. This type of petty cash book is known as analytical petty cash book. 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. Notes on petty cash book other other cash and banking. 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. Download cash book excel template 5 types of cash book templates with predefined formulas to help you record routine cash transactions of a company regularly. Recording in petty cash book dsaves time and efforts of teh chief cashier. The amount paid out by the chief cashier is credited in his cash book to complete the double entry. Aug 23, 2016 columnar or analytical petty cash book with problem hindi the commerce tutor. Apetty cash bookis generally maintained on a columnar basis a separate column being allotted for each type of expenditure. 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.