PETTY CASH BOOK

PETTY CASH BOOK

Imprest System: It is a system where a reimbursement is made of the total amount paid in a period or it can also be called as a system where petty cashier begin each new accounting period with the same amount of petty cash.

Advantages Of Petty Cash Book:

1. The number of entries in the main cashbook is reduced.
2. The main cashier’s burden is reduced.
3. The chances of mistakes in recording is minimised.
4. Posting become more easy with the Total’s Analysis Columns.

Advantages of using Analysis columns:
It let us know the money spent on each different nature of small expense.
The double entry for each analysis column by transferring the totals of the analysis columns to their respective accounts which are available in the General ledger.