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.


Quick NetOne, Econet, And Telecel Airtime Recharge