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 columns. For each important petty expenses there is a seperate column, and therefore columnar cash book is another name for this petty cash book. These analytical columns helps to know the actual amount spent on each and every type of petty expenses for the specified period. Each petty payment is first entered in the total payments column, and then recorded in the respective analytical column, so that :
i. the total amount spent on each expenses for a particular period can be easily ascertained by adding up the respective column.
ii. only the periodical total of each column is posted to the ledger.
iii. the total petty payment for any period can be easily ascertained from the total payments column.
The analytical petty cash book may be designed according to the requirements of the business.