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.
ii. Economy of Time: It requires lesser time in recording and also saves the time of the main cashier.
iii. Lesser chances of mistakes : The petty cash book is checked by the main cashier at the end of the specified period. This process minimises the chances of mistakes.
iv. Frauds can be minimised: Recording transactions on the basis of vouchers and checking of cash book by the main cashier minimises the chances of fraud.
Illustration : Prepare Petty Cash Book on imprest system from the following particulars.
2003
Sept. 1. Received for petty cash payments Rs.1,000
4. Paid for stationery Rs. 140
9. Paid for postage Rs.80
10. Paid for printing charges Rs. 150
11. Paid for carriage Rs. 125
17. Paid for telegrams Rs.25
20. Purchased envelops Rs. 30
21. Paid for coffee to office staff Rs. 30
22. Paid for office cleaning Rs. 50
30. Paid to Rajesh Rs. 200
Solution:
Analytical Petty Cash Book
Analysis of Payments
Dr. Cr.
| Receipt | C.B.F.N | Date | Particulars | V.N. | Total Payments |
Postage and Telegrams | Carriage | Travelling expenses | Repairs | Printing & Stationery |
Sundries | L.F | Personal Accounts |
|||||||||
| Rs. | P. | 2003 | Rs. | P. | Rs. | P. | Rs. | P. | Rs. | P. | Rs. | P. | Rs. | P. | Rs. | P. | Rs. | P. | ||||
| 1000 | 00 | 1-Sep | To Cash | |||||||||||||||||||
| 4 | By Stationery | 140 | 00 | – | – | – | – | – | – | – | – | 140 | 00 | – | – | – | – | – | ||||
| 9 | 9 By Postage | 80 | 00 | 80 | 00 | – | – | – | – | – | – | – | – | – | – | – | – | – | ||||
| 10 | 10 By Printing charges | 150 | 00 | — | – | – | – | – | – | – | – | 150 | 00 | — | – | – | – | – | ||||
| 11 | 11 By Carriage | 125 | 00 | – | – | 125 | 00 | – | – | – | – | – | – | – | – | — | – | – | ||||
| 17 | By Telegrams | 25 | 00 | 25 | – | – | – | – | — | – | — | – | – | – | – | – | – | – | ||||
| 20 | By Envelops | 30 | 00 | 30 | – | – | – | – | – | – | – | – | – | – | — | |||||||
| 21 | By Coff. to Staff | 30 | 00 | – | – | – | – | – | — | – | – | – | 30 | 00 | — | — | — | |||||
| 22 | By Cleaning ch. | 50 | 00 | – | – | – | – | – | – | 50 | 00 | |||||||||||
| 30 | By Rajesh | 200 | 00 | – | – | — | – | – – | – | — | – | – | – | – | – | 200 | 00 | |||||
| 830 | 00 | 135 | 00 | 125 | 00 | – | – | – | – | 290 | 00 | 80 | 00 | – | 200 | 00 | ||||||
| 30 | By Balance c/d | 170 | – | – | – | – | – | – | – | – | – | — | – | – | – | – | – | |||||
| 1000 | 00 | 1000 | 00 | |||||||||||||||||||
| 170 | 00 | 1-Oct | To Balance b/d | |||||||||||||||||||
| 830 | 00 | 1 | To Cash | |||||||||||||||||||