Download Petty Cash Book Excel Template

It is called an analytical cash book because it analyses the expenses into a number of grouped expenses. The analytical petty cash book is simply the extension of a simple petty cash book. 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.

A list of the sum of the different payment assessment columns from the PCB on the check vouchers. The finance team will verify the past expenditures free invoice templates for contractors and send a cheque for petty expenditures for the next period. In the ledger book, each petty expense account is kept separately.

Control over petty expenses

To simplify the work of the head cashier and release his unnecessary workload, businesses maintain petty cash. Thus, petty cash funds are given to other responsible staff of that particular department. The petty cash book records routine small expenses of the business that are recurring in nature in chronological order. Therefore, the total debits in the ledger agree with the credit in the main cash book. In other words, the petty cash book does not form a part of double-entry bookkeeping. Under the imprest system, total petty expenses for a specific period are estimated and the amount is advanced to the petty cashier.

We have created a simple and ready-to-use Petty Cash Book Template with predefined formulas that are useful for businesses of all sizes. In the balance column, it will show how much cash remains within our box. And
this formula is going to return the difference between the total amount
received and the total amount spent after each and every transaction. The essence of that column in the FILE sheet
is related to this one. It’ll help us automate the posting of the amount spent
on each transaction to their respective expense groups. To learn more about the currency and accounting number format please refer to this page.

Ready-To-Use Petty Cash Book Template

Considered 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. When the petty cash funds amount to zero, the petty cashier prepares an expense report and presents it to the head cashier. The head cashier reconciles the expenses and allocates other petty cash funds. Furthermore, the analytical or the imprest petty cash book also consists of a graphical representation of the spending during the period.

• Money spent on purchasing assets or payment of debt is recorded in separate columns known as ledger columns.
• As a result, the petty cashier keeps track of petty expenses in a petty cash book and presents them to the chief cashier at a predetermined time.
• The petty cashier records the petty transaction and presents an expense report for reconciliation to the head cashier at the end of the period.
• Additionally, the money received from the head cashier is written on the debit money column.
• Business organizations have various day-to-day expenses like office material expenses, postal stamps, conveyance, etc., where payment by cheque is not possible.

Moreover, it’s practical to highlight the net balance whenever we’re running low. In this step, we’ll fill the net balance in red color whenever it’s below $500. If the problem persists, then check your internet connectivity. If all other sites open fine, then please contact the administrator of this website with the following information. Fill in the date, description of the payment, and the amount.

Operation of Petty Cash

If these payments are made by cheques, a huge number of cheques are to be issued every day for petty payment which is time-consuming and expensive. As per the principle of cash payment, all payments are to be made by cheque. In the case of payment of petty cash, this basic principle of payment by cheque is not followed. Under this system, it is almost impossible on the part of the petty cashier to misappropriate the fund because the head cashier does have full control over the petty cashier. The head cashier remains always aware of the cash given to the petty cashier under this system.

• To simplify the work of the head cashier and release his unnecessary workload, businesses maintain petty cash.
• That is why a petty cash fund is created to handle petty expenses.
• It is nothing but a type of cask book template that is designed to handle small expenses for a specific period of time.
• A petty cashier relates to an individual in charge of handling petty cash and keeping track of it in a PCB.
• Under this system, it is possible to ascertain and know the number of expenses of the same nature of each column separately for a particular period.

This system will only allow the petty cash amount within the float amount. It’s fine ok if you don’t want some of the columns in your cashbook. And you can add as many analytical columns as you please to make room for more related expenses. In large firms, all receipts are banked and
payments are made by cheque.

Posting Petty Cash Book to Ledger,

Count the cash in hand in the petty cash box and insert the amount in the Actual cash column and it will spot the difference. To solve these problems, the chief cashier delegates responsibilities to another senior staff member to account for day-to-day small transactions. In addition, the chief cashier in a large business is required to handle numerous large transactions on a daily basis.

During the normal course of operations, numerous financial transactions are taking place within the company. In this regard, it is often challenging for companies to keep a proper track record of the expenses that they have incurred. Since the petty cashier does not have to collect, he can now make the small expense recording more accurate.

Ledger entry for each expense is not directly posted instead a petty cash account is maintained in the firm’s ledger. This template can be useful to accountants, department heads, accounting officers, students, and individuals to manage their petty cash expenses. When a payment needs to be made from the petty cash fund, the petty cashier prepares a petty cash voucher (PCV). Under the Petty Cash Imprest System, the head cashier provides a fixed feasible amount depending on previous spend history to the petty cashier for a given period. It can be either a week or a month depending on the volume of transactions. In the ordinary system, a sum of cash is given to the petty cashier.