Petty Cash Book [June 2022, 5 Marks]
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Accounting ProcessQuestion 4660 of 84
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Detailed Solution & Explanation
Petty Cash Book:
This is to be prepared to record the petty (small) expenses, which are incurred
frequently.
On the payment side the amount is classified into various columns depending upon the
account to which it has to be debited.
The columns can be for conveyance expenses, postage, repairs & maintenance,
printing & stationery; salary, wages and so on.
It is also known as analytical cash book.
In petty cash book receipt will be from main cash book.
Posting:
The total of this column is debited to respective expense accounts in the ledger after a
specific period may be monthly, weekly etc.
The Balance of petty cash book (i.e. receipts (-) payments) shows the balance of cash
in hand which will be shown in Trial balance.
About This Chapter: Accounting Process
Paper
Paper 1: Accounting
Weightage
25-30%
Key Topics
Journal, Ledger, Trial Balance, Cash Book, Rectification
This chapter covers Journal, Ledger, Trial Balance, Cash Book, Rectification and is part of Paper 1: Accounting in the CA Foundation exam.
View Official ICAI SyllabusExam Strategy Tip
This topic carries 25-30% weightage. Focus on understanding core concepts rather than memorizing.
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