Petty Cashbook

A petty cash book is used to record low value cash payments.

Imprest system Imprest system of a petty cash is where the amount spent each period is restored so that the petty cashier starts each period with the same amounts

Analysis Columns are used to divide the payments into different categories

Accounting entries in a cash book:

Money received

  1. Money received from chief cashier insert to debit side with the word bank or cash.
  2. Debit the column with any money received from any other source. 

 Money Paid

  • Credit the total paid column with any amount paid and also enter the amount in the analysis column.

At the end of the period

  • Add the total paid column.
  • Add each of the analysis columns and insert the totals.
  • Balance the total received column and the total paid column. Carry down the credit side to the debit side to start the new period.