Question

What are the advantages of a petty cashbook?

Answer 1

The advantages of a petty cash book are as follows:

1. Minimises labour
2. It is easy to record transactions in a petty cash book
3. Avoids confusion by recording petty expenses separately
4. It saves time and effort of the chief cashier
5. It is audited at the end of an accounting period, therefore there is less chance of errors.

Also read:

• Cash Book
• Cash Flow Statement
• Ledger in Accounting

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