Question

_________ is the book which is used for the purpose of recording the payment of petty cash expenses.

• A. Cash book
• B. Bank book
• C. Petty cash Book
• D. Miscellaneous Expenses Book

Answer 1

The correct option is C Petty cash Book

In every organisation, a large number of small payments such as conveyance, cartage, postage, telegrams and other expenses are made. These are generally repetitive in nature.

If all these payments are handled by the cashier and are recorded in the main cash book, the procedure is found to be very cumbersome. The cashier may be overburdened and the cash book may be become very bulky.

To avoid this, large organisations normally appoint one more cashier and maintain a separate cash book to record these transactions. Such a cash book maintained by petty cashier is called petty cash book. It is used for the purpose of recording the payment of petty cash expenses.