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What is an Analytical Petty cash Book?

While recording the transactions in petty cash book if all the expenses are analyzed and entries are recorded in cash book on the basis of this analysis such petty cash book is called “Analytical Petty Cash Book”. For recording the expenses in this book whole of the petty expenses are classified into few ‘heads’ and a decision is taken as to which of the petty expenditure is to be recorded under which head. All expenses are recorded in the books according to the decision. The description of each expenditures are recorded in particulars column but the head of expenditure recorded in separate column the main advantage of maintaining analytical petty cash book is that each payment is not required to be posed to the ledger separately.

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