Download Free Petty Cash Book Template in Excel Format

Following the Total Amount, Columns are columns dedicated to recording the heads of items that are most common in the business. The word ‘petty cash’ is directly derived from the word ‘petty’, meaning ‘insignificant’; ‘of secondary importance. “Petty cash” is a small amount of cash that is kept aside for small purchases too small for a cheque to be made out and cashed. Under this system, it is possible to ascertain and know the number of expenses of the same nature of each column separately for a particular period. Particularly in the case of small transactions, it is often challenging to keep a track record of all the expenses that have been incurred.

Here is another template which also useful for accountants to control their petty cash balance. You can save some time by downloading this
petty cashbook format without formulas so that you can jump start from there. Normally in big organizations, a Petty Cashier
is assigned to handle petty expenses. It may also be assigned to an existing
employee who in addition to his normal duties maintains a separate Cashbook to
record these petty expenses. That’s
where maintaining a separate book for recording only cash transactions becomes
imperative to larger organizations. The petty Cashbook is a book
that keeps records of quick payments for miscellaneous small expenses in the
business concern.

Explanation of the format details

We can create a simple petty cash book where we’ll only insert the received and payment amounts. And we can also build an analytical cash book to elaborate on the expenditures. Therefore, go through the steps below carefully to carry out the operation. Big organizations have cash books where they record their revenues and expenditures.

In the ordinary petty cash system, a petty cashier receives a lump sum amount. Cashier records date-wise receipts of cash from the head cashier. Petty Cash book is the book which records small cash payment and receipt during daily business operation.

Petty Cash Book Format

Therefore, it is a good idea to have a monthly round-up of expenses paid by the company so that a proper balance is maintained in the company. Compared to other petty cash systems, the imprest system is not labor intensive and easy to do. Therefore, in this method, the workload of cashiers is minimized significantly.

Moreover, it consists of printable formats of Petty Cash Book as well as Imprest Petty Cash Book. The summary section helps you to easily reconcile and spot the difference of the Petty Cash Book in just minutes. Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs. Our goal is to deliver the most understandable and comprehensive explanations of financial topics using simple writing complemented by helpful graphics and animation videos. We follow strict ethical journalism practices, which includes presenting unbiased information and citing reliable, attributed resources.

STEP 4: Insert Total Payment

Therefore, recording petty cash transactions on the main cash book could make everything chaotic and complicated. That is why it is recommended to maintain a separate petty cash book for small transactions. Part of the manual record-keeping system of a firm, in most companies, a petty cash book is a ledger book instead of a computer record.

The petty cash book has declined in importance, as companies are gradually eliminating all use of petty cash, in favor of using company credit cards. This column is used for expenses that are insignificant and do not fall under any other columns of commonly occurring expenses in the analytical petty cash book. To pass the journal entry for total expenses paid, individual petty expenses are debited and credited to Petty Cash Account. The debit side consists of cash receipts from the head cashier whereas the credit side consists of the payments made against each petty expense. It is advisable to record inward cash entries against receipts numbers and outward payments against voucher numbers.

Advantages of a Petty Cash Book

A petty Cash Book can, therefore, be described as a ledger that lists down all the petty cash expenses that the company has incurred over a specific course of time. In most companies, all cash payments are to be made by cheque. However, in the case of petty cash payment, payment by cheque is not followed. In the fixed petty cash system, the chief cashier offers a fixed amount of money for a specified period to the petty cash cashier.

A petty cash book is kept to record minor expenditures including mailing, stationery, and telegrams. So for making payment of petty expenses a petty cash fund is created as an alternative to the issue of cheques from where cash payment is made. Operating petty cash funds is very often termed as an imprest system. The person responsible for recording these transactions is called a petty cash cashier. Ordinary Petty Cash Book or Simple cash book consists of two sides debit and credit.

Set Up Petty Cash

A petty cash book is just as its name suggests a book which is used for the purpose of recording small amounts of expenses in a business. A simple petty cash book looks like a cash book with two main capital assets in wave columns (left for receipts & right for payments). Cash received by the petty cashier is recorded on the debit side, and all payments for petty expenses are recorded on the credit side in one column.

• There are numerous cash transactions in both large and small organizations in today’s competitive business world.
• To learn more about the currency and accounting number format please refer to this page.
• To make our Excel petty cashbook template user-friendly, just do
  the following.
• Remember to format all
  the amount columns and cells with the accounting/currency number format.
• The fund operates on the imprest method, where they deposit the starting sum of cash into accounts and then use it for a certain reason.

Journal entry posted in the Postage account on the debit side by writing “To Petty Cash A/c”. Journal entry posted in the Cartage account on the debit side by writing “To Petty Cash A/c”. Journal entry posted in the Stationery account on the debit side by writing “To Petty Cash A/c”. You can increase or decrease subheadings for expenses as per your requirement. In addition to this, you can also download other accounting-related templates like Cash Book, Account Receivable, Accounts Payable, and Profit & Loss Account.