Cambrige Notes: Principles of Accounts: The Analytical Petty Cash Book

Although petty cash payments are varied in nature
In most businesses there are common items that benefit from petty cash payments
For example motor repair expenses, petrol expenses, employee bus fare, stationary etc
For this reason in such businesses, the petty cash book is maintained in columnar (or analytical) form,
with a separate column for each usual item of expense and a column for total
This type of Petty Cash Book is known as Analytical Petty cash Book
This type of Cash Book will allow management/proprietors to tell at a glance the total amount spent on each of these common expenses
It also saves time posting each item of petty payments unnecessarily in the ledger;
As only totals of various columns are to be posted in the ledger
An example of the ruling of an Analytical Petty Cash Book is shown below:

Here the Receipts side acts as the Debit side of the Petty Cash Book
The Sundry Expenses column is used to show all the other petty expenses that cannot be placed in any of the provided columns
Sundry expenses is just a name they can be called Other Expenses, General Expenses etc
The business decides on the name and the expenses that it will classify as Sundry Expenses or any other name the business chooses
The corresponding entries will be found in the Cash Book and General Ledger as shown below

The Cash and Bank balances shown above are for illustration purposes only in a real world scenario there is likely to be many other entries in the Cash Book

Cambrige Notes: Principles of Accounts: The Analytical Petty Cash Book- Updated 2023