One such type is the analytical petty cash book. In such a cash book there are pre-existing columns for the usual expenses that recur quite frequently for an organization. So if an organization has daily expenses for food, stationery, postage, etc.
these will be individual columns in the petty cash book. One major advantage of this analytical system is that it saves time.
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 total. This kind of Petty Cash Book is known as Analytical Petty cash Book. 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”.
Dec 26, · The analytical cash book is a book kept by a petty cashier. 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. Just as in the main cash book, all payments are credited in the petty cash book. Analytical Petty Cash Book.
As in the case of any other cash book, petty cash book also has the debit side and the credit side. 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.
The credit side is bigger and thus has many xn--c1ajbkbpbbduqca7a9h1b.xn--p1ai: Navin Malhotra. Analytical Petty Cash Book.
Considered as the most beneficial method of recording petty cash payments. In the analytical version, a separate column is used for each commonly occurring item of expenditure such as stamps, postage & handling, stationery, wages etc. A column for “sundries” is usually added for miscellaneous payments. A petty cash book is generally maintained on a columnar basis – a separate column being allotted for each type of expenditure.
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. The credit side consists of several analysis columns. Mar 17, · Petty cahier will record the petty payments in a book called “petty cash book”. It is maintains just like the cash book. Money received from head cashier is recorded on debit side and payments are recorded on credit side. It is also called as analytical petty cash book, as it analysis the payments under different heads separately.
Definition: Petty Cash Book is a ledger book, which is used to record petty cash expenses formally in chronological order, with the date. For this purpose, a petty cashier is appointed by the firm, to pay for small payments (usually below Rs.
) and keep a record of the same. 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. These small expenditures are usually paid using coins and currency notes rather than checks.
This kind of Petty Cash Book is known as Analytical Petty cash Book. One major advantage of this system is that it saves time. Also, it will facilitate the accountant or the organization to evaluate the expenses under the dissimilar various heads.
All petty payments are to be classified into different heads and different columns are maintained. In Module 12, which covered the bank cash book, the advantages of paying all cash and cheques into the bank intact were evident. In a business operating this type of cash book, small cash payments are usually made out of petty cash. These small cash payments are recorded in a separate book, known as a petty cash xn--c1ajbkbpbbduqca7a9h1b.xn--p1ai: Margaret Nicholson. Petty Cash Book: 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.
For this purpose, a Petty Cashier is appointed by the Chief Cashier. Answer / g-connect xn--c1ajbkbpbbduqca7a9h1b.xn--p1ai cash book is used for recording all petty transactions which also involves an imprest system while the cash book is an extensive part of the petty cash book that record all cash transactions whether big or small.
2. Mar 25, · Columnar or Analytical Petty Cash Book: For small-scale 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.
But this one will be able to know which items of petty expenses need to be controlled.5/5. Advantages of analytical petty cash book: The advantages of analytical petty cash book is given below. i. Simple Method: It is a simple method of recording petty expenses. The maintenance of petty cash book does not require specialised knowledge of accounting. xn--c1ajbkbpbbduqca7a9h1b.xn--p1ai: Navin Malhotra.
The petty cash custodian will cash the check and add the amount to the other cash. Under the imprest system, the petty cash custodian should at all times have a combination of currency, coins, and petty cash receipts that equals $ (the imprest petty cash balance). Control over the petty cash occurs during the replenishment process.
The image above is a sample of petty cash book analytical. As we know, petty cash book analytical is important for our business. Any new small business operator need to know the necessity of understanding how to get ready a blank invoice template as this is. The petty cash book is a book of vouchers which are made each time an expense is made from petty cash (money). Always the voucher would show the amount, purpose, recipient, general ledger account number and date relating to the expenses.
The analytical petty cash book has a separate column for each item on the credit side while the debit side (Also see overview of Double Entry Accounting) contain one column for all the cash received from the cashier. If there are many transactions, the petty cashier may only choose the most common expenses to be featured in different columns. Jul 05, · AN ANALYTICAL PETTY CASH BOOK: An Analytical petty cash book is employed by a large concern having a number of transactions of petty amount such petty.
Cash book contains individual columns for each expense every small payment is recorded on the credit side. One of the total payment column and second in one of the analytical amount columns.
Analytical Petty Cash Book: 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. All petty payments are to be classified into different heads and different columns are maintained. Imprest Petty Cash Book. 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.
Aug 12, · Analytical Cash Book | Class 11 Accountancy Cash Book by Anjali xn--c1ajbkbpbbduqca7a9h1b.xn--p1ai is an online education portal that provides interactive study material for students of classes 6th to 12th for. 2>cash book can be classified into single column,double column,triple column,and petty cash book,but petty cash book can be classified into simple and analytical petty cash bonk.
3>total of cash expenses are not transferred anywhere else,but summarised total of petty expenses are transferred to the cash book. Aug 15, · The system is very useful specially if an analytical Petty Cash Book is used.
The book has one column to record receipt of cash (which is only from the main cashier) and other columns to record payments of various types. The total of the various columns show why payments have been made and then the relevant accounts can be debited. class 11th accounts concept of cash book petty cash book simple and analytical petty cash book analytical petty cash book a complete question of analytical p.
An analytical petty cash book, on the other hand, is a cashbook which contains only one amount column on the receipt side and a number of different columns on the payment side for the head of expenses.
It is called analytical cash book because it analyses the expenses into a number of grouped expenses. Simple petty Cashbook Example – solution 2. Columnar or Analytical Petty Cash Book: For small-scale 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.
Nov 26, · A Petty Cashier in a firm received ₹15, as the petty cash imprest on 4th June, During the week, his expenses were as follows: Write up the Analytical Petty Cash Book and draft the necessary Journal entries for the payments made. 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.
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. A petty cash book is a book of vouchers which are prepared each time a disbursement is made from petty cash. The voucher would show the date, amount, recipient, purpose and general ledger account. A petty cash book which had many sub-columns on payment side for recording expenses which are repetitive in nature, e.g.
postage and telegrams, printing & stationery, carriage & cartage, sundry expenses, etc. is called analytical/columnar petty cash book. 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.
Uses of Petty Cash Book It's a cash book used to enter daily petty expenses like cost of stationery, postage and Xerox copy and so on. Petty cash book can be simple or analytical. A simple petty cash book is one in which there is one common column for date and particulars, for both the receipts and payments. Analytical petty cash book is a book in which there is only one amount column on the debit side and a number of columns on the credit side for different heads of expenses.
Sep 28, · Advantages of Petty Cash Book: Simple method: Recording of transactions in a petty cash book is easy. In an analytical Petty Cash Book, there exists separate heads for different petty expenses, which makes recording much easier. Recording in a Petty Cash Book does not require formal knowledge of accounting principles and techniques.
Title: The analytical petty cash book and the imprest system 1 The analytical petty cash book and the imprest system. Chapter 18; 2 Petty cash Not important A book of original entry, where small, usually insignificant amounts of money are recorded. Such as travel expenses for employees, postage expenses hospitality.
We now know 6 books of. Jul 14, · 5. Prepare an analytical petty cash book from the following information provided by Mr.
Shekhar for the week ended on 20th March, The petty cashier received Rs.8, in the beginning of the week. Also, pass a journal entry and post them to their respective ledger. Date Particulars Rs. Petty Cashier is a person, who maintains the Petty Cash Book. Petty cash book is maintained in a columnar form. In this book, separate columns are provided for usual head of expenditure. A Petty Cashier makes a detailed analysis of petty payments and records under suitable heads, i.e., column.
Petty cash book is similar to 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 book is maintained by the petty cashier.
Petty cash book can be maintained either in a simple or in analytical way. Nov 27, · The imprest petty cash system is a method of accounting for petty cash expenses. Under the system, the petty cash fund balance is always maintained at a fixed amount decided on when the fund is first established. During an accounting period petty cash is used to pay cash expenses which are supported by petty cash xn--c1ajbkbpbbduqca7a9h1b.xn--p1ai the end of the period a petty cash reconciliation is.
LECTURE 5 The analytical petty cash book and the imprest system Every business has a number of transactions of very small value which, were they all recorded in the Cash Book, would only serve to make it more difficult to identify the important transactions that businesses need to keep a close eye upon.
Just like the Cash Book, the Petty Cash Book is both a book of original entry and a ledger. Petty cash book is a formal summarization of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Thus, the book is part of a manual record-keeping system.
Petty Cash Related Tutorials; Tally Tutorial. petty cash voucher is released by the handler of the funds to support every payments made. petty cash book contains a summary of all petty cash disbursements, its total and the balance.
Difference. Analytical Petty Cash Book Simple Petty Cash Book Its format is the same as that of a simple cash book. On its debit side, the opening petty cash balance and the amount received from the chief cashier is recorded and expenses are recorded on the credit side. An analytical petty cash book is divided into two main sections: credit and debit.
The debit section is a single column where you list withdrawals. The credit section is split into several columns — one for each type of expense.
The benefit of an analytical petty cash log is that it explains each transaction. The person who is responsible for recording the receipts and the payments is known as the petty cashier. In the company, the petty cash book is usually maintained by the administrative department of the company as the accounts departments are generally occupied by the more significant business transactions, and also the admin department is only responsible for such kind of expenses. Petty cash fund is a relatively small amount of cash that businesses keep on hand for the purpose of small transactions such as providing change to customers, tea coffee expenses, stationery, taxi charges, etc.
In such transactions, the use of checks is time consuming, costly or illogical. Petty cash book is maintained by the petty cashier. 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. The additional (analysis) columns are used to analyze expenditures as they arise.
Totals are carried forward from page to page until the end of the periods. Payment relating to personal accounts (e.g IVOS) are recorded in a separate.
What is an Analytical Petty cash Book? xn--c1ajbkbpbbduqca7a9h1b.xn--p1ai is home of thousands of articles published by users like YOU. Here you can publish your research papers, essays, letters, stories, poetries, biographies and allied information with a single vision to liberate knowledge.