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What is Petty Cash Book?

Every business ash to make payments involving smaller or petty amount e.g., carriage, cartage, coolly hire, postage telegrams etc. Such payments, by their nature cannot be made by cheque. It is usual for the business units to maintain a separate cash book to record small payments only. Such cash book is known as petty Cash Book. It relieves the main cash book of numerous transactions involving petty sums and also helps in reducing the work-load of chief cashier. If all the business payments are recorded in cash book, the head cashier’s botheration will unnecessarily increase. There are many payments of small amounts which have to be paid. It is very difficult for the head cashier to keep records of all small payments himself. Therefore, it is necessary a separate book for these small expenses is kept which is known as “Petty Cash Book”.

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