What are the advantages of maintaining a petty cash book? explain
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1.Reduction in numbers of transactions: Many expenses of small nature are recorded in petty cash book. The number of transactions is reduced in the cash.Reduction of errors: As head cashier checks the accounts of previous month and gives advance for the coming month, thus, errors if any are reduced 2..Savings of time and labor: As the petty expenses are recorded by petty cashier hence the labor and time of the head cashier is saved
3.Check on expenses: From time to time the head cashier checks the account of petty cashier at any time so that the chances of misuse are minimized.
4.Control on petty expenses: While checking the total of such expenses, the head cashier can put objections on undesirable expenses. Thus, expenses are controlled.
5.Facility in posting: Since only the total of various small expenses are recorded in cash book. Hence direct ledger posting becomes easy.
6.Saving of space: Only the total of all small expenses are recorded in cash book and also in ledger account. Thus, lot of space is saved.
3.Check on expenses: From time to time the head cashier checks the account of petty cashier at any time so that the chances of misuse are minimized.
4.Control on petty expenses: While checking the total of such expenses, the head cashier can put objections on undesirable expenses. Thus, expenses are controlled.
5.Facility in posting: Since only the total of various small expenses are recorded in cash book. Hence direct ledger posting becomes easy.
6.Saving of space: Only the total of all small expenses are recorded in cash book and also in ledger account. Thus, lot of space is saved.
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