Petty Cash Book [June 2022, 5 Marks]
Options
A
B
C
D
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Accounting ProcessQuestion 4993 of 84
All Questions Correct Answer
✅ Option — Correct Option
All Options:
- A
- B
- C
- D
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.
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