Question

what are the advantages of maintaining a petty cash book ?

Answer 1

saving of time and efforts of chief cashier:- as petty cashier handles the work of making all petty expenses and recording them as well a lot of time and energy of the main cashier is saved.
easiness in posting:- only the total of each head of expenses is posting into the ledger. as such a lot of space is saved and the posting becomes very convenant.
easiness in preparing the cash book:- as the number of small payment in every business is quite large and as these are recorded in the petty cash book itself the main cash book is not overburdened can be more easily totalled.
control on petty expenses:- the main cashier Keep checking the petty cash book from time to time and a proper chat is put on necessary expenditure.
laser chance of fraud:- petty cashier obtain a receipt of every payment made by him and keep a proper record of them. the receipt duly signed by the main cashier while reimbursing the amount to the petty cashier. as such it minimise the chance of fraud.
simple method:- the maintenance of petty cash book doesn't require any specialised knowledge of accounting.

Answer 2

1) It saves the time of the head cashier.

2) It will save the cashier time in writing up the cash book and posting into the ledger.

3) It will provide control over small payments.

4) It avoids the unnecessary details as it is convinient to post the total directly into the ledger.