Where does petty cash come from?

Open in App

Solution

The term ‘petty cash’ is taken from the word ‘petty’ signifying ‘minor’; ‘little’; ‘of optional significance’. ‘Petty cash’ is a minute quantity of money that is saved aside for piddling buys, too little to even consider requiring the work of the making out and encashing of a cheque.

Also see:

MCQs on Journal Entries

Types of Cash Book

Suggest Corrections

Similar questions

What is petty cash book? Write the advantages of petty cash book?

Prepare a Petty Cash Book on the Imprest System from the following:

2017
April 1	Received ₹ 10,000 for Petty Cash.
3	Paid Cartage ₹ 800.
4	Paid Bus Fare ₹ 400; Speed Post ₹ 200.
6	Paid for Stationery ₹ 700.
7	Paid for Courier Services ₹ 300.
9	Paid for Taxi fare ₹ 800; Wages ₹ 300.
10	Paid for Wages ₹ 400; Charity ₹ 500
11	Paid for Newspaper bill ₹ 600.
12	Paid for soap ₹ 320; Speed post charges ₹ 300.
13	Paid for Postage ₹ 780.
14	Paid for Repairs of Chairs ₹ 500.
15	Paid for Refreshment to customers ₹ 900.

What is petty cash book? Write the advantages of the petty cash book.

Join BYJU'S Learning Program