ZIMSEC O Level Principles of Accounts Notes: Source Documents: The petty Cash Book: 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:
ReceiptsDateDetailsVoucher
No
TotalMotor
Expenses
BusfareStationarySundry
Expenses
5001 OctCash
3 OctPetrol13030
3 OctJ Gondo22525
3 OctS Mukuyu31515
5 OctStationary477
10 OctPostage533
17 OctPetrol61111
23 OctPostage711
24 OctR Banda823
25 OctL Kudoka9121223

127

41

52

11

23

37331 OctCash
31 OctBalancec/d500

627

5001 NovBalanceb/d
  • 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
Cash Book
DRCR
DateDetailsCash($)Bank($)DateDetailsCash($)Bank($)
1 OctBalance b/d100001000001 OctPetty Cash500
30 OctPetty Cash373
31 OctBalance c/d9127100000

10000

100000

10000

100000

General Ledger
Motor Expenses Account
DateDetailsAmount($)DateDetailsAmount($)
31 OctPetty Cash4131 OctBalance c/d41
31 OctPetty Cash4131 OctBalance c/d41
Busfare Account
DateDetailsAmount($)DateDetailsAmount($)
31 OctPetty Cash

52

31 OctBalance c/d

52

Stationary Account
DateDetailsAmount($)DateDetailsAmount($)
31 OctPetty Cash

11

31 OctBalance c/d

11

Sundry Expenses
31 OctPetty Cash

27

31 OctBalance c/d

27

  • 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

To access more topics go to the Principles of Accounts Notes.

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