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What is Petty Cash Book?
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Answer Posted / hassan ahmed khan
It is another cash book which is maintained, generally, in
large business concerns to reduce the burden of 'Main Cash
Book', in which numerous transactions involving petty
(small) amounts are recorded. For this purpose, a petty
cashier is appointed by the chief cashier. The chief
cashier advances a sum of money to the petty cashier to
enable him to meet petty expenses for a fixed period. The
petty cashier will record this amount on the debit side of
the petty cash book while the chief cashier will record the
same amount on the credit side of the main cash book.
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