Question

What is a petty cash book? Give an example.

Answer 1

A petty cash book is a part of an accounting book utilized for recording costs that are of little worth and small in nature, for instance, stamps, stationery, courier, carriage, day-to-day compensation, and so forth. These are costs that occur every day; generally, petty cash expenses are huge in amount however insignificant of value.

Also see:

• MCQs on Journal Entries
• Types of Cash Book