Q.Write a short note on petty cash book.

The petty cash book records small routine cash payments; it is kept by a petty cashier under the imprest system, keeping the main cash book free of trivial entries.

Meaning: In every business a large number of very small cash payments (postage stamps, stationery, bus/auto fare, coolie/cartage, refreshments, sundry expenses) are made every day. Recording each of these in the main cash book would make it bulky and would waste the chief cashier's time. So a separate book, the petty cash book, is maintained by a junior clerk called the petty cashier to record all such petty payments.

Imprest system: The most common way of maintaining it is the imprest (float) system:

• The main cashier gives the petty cashier a fixed sum (the imprest amount) for a period, say ₹2,000 for a month.
• The petty cashier makes small payments out of this and records them.
• At the end of the period, the main cashier reimburses exactly the amount spent, so the petty cashier again starts the next period with the same fixed float. …