Petty Cash Book: Meaning/Definition - SS1 Accounting Lesson Note

A petty cash book is a type of subsidiary ledger used to record small or routine cash transactions, such as office supplies or refreshments. It is maintained separately from the primary cash book and is used to track cash disbursements that are not significant enough to be recorded in the primary cash book. Below is a format for a typical petty cash book:

C.B Folio

Date 

Particulars 

Voucher number

Total 

Postage and stamps

Office tools

Stationery 

Travel 

Utilities 

Ledger accounts

Petty cash books typically have a fixed amount of money that is replenished on a regular basis, and all expenditures made from the petty cash fund are recorded in the book. This allows businesses to track and control small cash transactions, and it also helps to reduce the number of entries in the primary cash book, making it easier to reconcile and balance.