A petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel, newspapers, cleaning, pins, casual labor, etc. These small expenditures are usually paid for using coins and currency notes rather than checks. Petty cash is a small amount of discretionary funds in the form of cash used for minor expenditures. [1] The most common way of accounting for petty cash expenditures is to use the imprest system. [2] . Petty cash is cash on hand that is used to pay small expenses. Learn more about petty cash and how to manage it for your business with this guide. Guide to petty cash and its meaning. Here we discuss how does petty cash works along with its format, Accounting, and examples.
