Philip Awudulai Gyamerah

A petty cash book is a type of accounting book that is used to record small, regular expenses such as ¹ ² ³: - Postage and handling - Stationery - Carriage - Daily wages The petty cash book is usually maintained by a petty cashier, who receives a lump sum of money from the head cashier to cover these expenses ¹ ² ³. The petty cash book is used to record all transactions related to these expenses, and it is balanced at the end of each period to ensure that the amount of petty cash agrees with the amount shown in the general ledger ¹ ² ³. There are two main types of petty cash books: the simple petty cash book and the analytical petty cash book ¹ ³. A simple petty cash book is similar to a main cash book, with cash received recorded on the debit side and payments for petty expenses recorded on the credit side in one column ¹ ³. An analytical petty cash book, on the other hand, is considered the most effective way to record petty cash payments ¹ ³. In this type of petty cash book, a separate column is assigned for each petty expense on the credit side, and whenever a petty expense is recorded in the total payment column, the same amount is recorded in the relevant petty expense column ¹ ³.