What are the advantages of maintaining a Petty Cash Book? Explain.
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Answered by
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The main advantages are:
Reduction in numbers of transactions: Many expenses of small nature recorded in petty cash book, the number of transactions is reduced in the cash.
Reduction of errors: As head cashier check the accounts of previous month and gives advance for the coming month, does, errors if any are reduced.
Savings of time and labour: As the petty expenses are recorded by petty cashier at any time so that the chances of misuse are minimised.
Control on petty expenses: While checking the total of such expenses, the head cashier can put objections on undesirable expenses, thus, expenses are controlled.
Facility in posting: Since only the total of various small expenses are recorded in cash book, hence, direct ledger posting becomes easy.
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.
The main advantages are:
Reduction in numbers of transactions: Many expenses of small nature recorded in petty cash book, the number of transactions is reduced in the cash.
Reduction of errors: As head cashier check the accounts of previous month and gives advance for the coming month, does, errors if any are reduced.
Savings of time and labour: As the petty expenses are recorded by petty cashier at any time so that the chances of misuse are minimised.
Control on petty expenses: While checking the total of such expenses, the head cashier can put objections on undesirable expenses, thus, expenses are controlled.
Facility in posting: Since only the total of various small expenses are recorded in cash book, hence, direct ledger posting becomes easy.
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.
Answered by
26
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The petty cash book is a document in business used for recording misclenius expenditure this are the unplanned and shallow demands that may arise in the daily running of the business.
The petty cash book accounts for the cash spent on this short term arising needs of the company and it is necessary for accountability for the expenditure on the resources of the firm.
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