Analytical Cash Receipts and money Payments Books

Analytical Cash Receipts and money Payments Books

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The Performa of analytical cash receipts and funds payments books concerning the insurance business seems within this page. Any company can adjust suitably the proforma based upon its very own needs.

Petty Cash Book

Watch needs to make payments involving smaller sized or petty amount, e.g.. carriage, cartage, cooly hire, postage telegrams etc. Such payments, by their very nature can’t be produced by cheques. It’s conventional the company units to keep another cash book to record small payments only. Such cash book is called Petty Cash Book. It relieves the primary cash book of several transactions involving petty sums and will help with lowering the work-load of chief cashier.

Imprested System

Under this process, petty cashier will get a set amount of cash referred to as imprested or float which will meet the requirements of balancing period. Balancing period can be a week or week or month. In the finish of balancing period the petty cashier is offered fresh cheque from the amount comparable to his payments throughout the same period. Thus, at first, each time, he’ll begin with the quantity fixed : i.e. imprested or float.

Usual approach to maintaining petty cash book would be to rule it for acquiring analysis of expenditure. It may have one column around the debit side to record receipt of money (only in the primary cashier) and credit side is split into different posts. Each column is restricted to a particular kind of expenditure. Number and name of posts in every situation will be based upon the needs from the business.


(1) Cuts down on the work of chief cashier.

(2) Effective control could be worked out over small payments because each payment needs to be based on vouchers and vouchers are examined frequently i.e.. in the finish of every balancing period.

(3) Saving in labor because each payment isn’t needed to become published within the ledger individually.

Accounting Treatment

The periodical cheques attracted for petty cash are joined around the credit side from the cash book and debited to Petty Cash A/c within the ledger. Such amount shall be also joined around the debit side from the Petty Cash Book (for memorandum purposes). In the balancing period the Petty Cash Book is going to be examined underneath the different posts provided inside it. For every column provided init (except ledger and miscellaneous posts) one nominal account is opened up within the ledger. Each expense account or nominal account is going to be debited and Petty Cash Ale is going to be credited. Do this by way of journal entry. Reason is the fact that here petty cash book is regarded as a memorandum book only.

Analytical or Columnar Petty Cash Book

While recording the transactions in petty cash book if all of the expenses are examined and records are recorded in cash book based on this analysis. such petty cash book is known as ‘analytical petty cashbook’. For recording the price within this book, whole from the petty expenses has sorted out into couple of ‘heads’ along with a decision is taken regarding which from the petty expenditure will be recorded to which mind. All expenses are recorded within the books based on the decision. The outline of every expenditure is recorded in particulars column however the mind of expenditure recorded in separate posts. In the finish of period this petty cash book is balanced very much the same as with situation of straightforward petty cash book.

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