Cash Book and Petty Cash Fund । नगद खाता र सानो नगदी कोष

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petty cash fund

What is a cash book?

Cash book is the book of all information prepared using all the financial transaction of cash inflow and cash outflow in a certain period of time. We do not enter credit transaction in cash book. Cash book acts as ledger and journal at once.

  • Cash book is the description of cash inflow and cash outflow of the organization.
  • It is a subsidiary book.
  • It is sub-division of a journal.
  • Ledger of the real account.
  • Use of contra entry. (in contra entry – if a debit entry is recorded in an account, it will be recorded on the credit side and vice-versa)
  • The cheque is related within the bank.
  • Cheque received but not deposited into the bank should be recorded as the cash receipt.
  • No entry for credit.
  • There will be two columns in the cash book, received cash is posted on the debit side and paid cash is listed in the credit side of the book.

Types of Cash Book

  1. Single column cash book
  2. Double column cash book
  3. Triple column cash book

What is petty cash fund?

Petty cash fund is a relatively small amount of cash that businesses keep on hand for the purpose of small transactions such as providing change to customers, tea coffee expenses, stationery, taxi charges, etc. In such transactions, the use of checks is time consuming, costly or illogical. Petty cash book is maintained by the petty cashier. Petty cash book can be maintained either in a simple or in an analytical way.

Types of Petty Cash Fund & Petty Cash Book

On the basis of Imprest  (सोधभर्नाको आधारमा साना नगदी कोष दुई प्रकारका हुन्छन )

i) Imprest Petty Cash Fund – महिनाको अन्त्यमा भएको खर्च बराबरबाको रकम मात्र छुट्याइन्छ।

ii) Non-imprest Cash Fund – बाकी रहेको खर्चपनि लिएर फेरी जम्मा रकम महिनाको सुरुमा छुट्याइन्छ।

खर्च लेखांकनको आधारमा Petty Cash Book दुई प्रकारका हुन्छन। 

i) Simple Petty Cash Book

ii) Analytical Cash Book

Importance & Advantages of Petty Cash Book

Business performing a large number of petty transactions usually maintain a separate petty cash book. The following points highlight the importance and advantages of petty cash book which can be taken as its objectives as well.

* Petty cash book maintains records of all petty payments systematically.

* Petty cash book supplies information regarding petty payments made on different heads more easily and quickly.

* Petty cash book makes possible for making a comparison of the petty expenses between two periods and helps in controlling such petty expenses more effectively.

Petty cash book helps in making the records of cash transactions up-to-date because of the division of labor in recording cash transactions.

* Petty cash reduces the burden of the head cashier as he is not required to handle petty transactions. Hence, the head cashier will have enough time to manage and control major cash transactions more effectively.

* Petty cash book saves time because each payment under a particular head is not posted into the ledger separately. The posting is made with the periodical total at a time.