FRESHSTART INTERNATIONAL SCHOOLWeek: 10 (Ten)
Topic: Petty Cashbook
Meaning of Petty Cashbook
A petty cashbook is a book of accounts used to record small frequent cash expenses of a business. These expenses are too minor to be paid by cheque and include items such as transport fare, stationery, postage, office refreshments, cleaning materials, etc.
Importance of a Petty Cashbook
Columns in a Petty Cashbook
The number of columns in a petty cashbook is determined by the number of small expense items the business decides to record in it. Which means some businesses will have more columns in their petty cash book than the others.
Imprest System
The imprest system refers to the special way a petty cash account is managed. It involves the following;
Example: A business gives a petty cashier N20,000 as imprest for the month of August 2025. During the month, the following expenses were made; transport – N4,000, stationery – N3,500, postage – N1,500 and refreshments N2,000.
Record these in the petty cashbook.
Solution:
Business Name
Petty Cash Book
| Date | Particulars | Transport (N) | Station (N) | Post (N) | Ref (N) | Total (N) | Balance (N) |
| Cash received | 20,000 | 20,000 | |||||
| Transport | 4,000 | 4000 | 16,000 | ||||
| Stationery | 3,500 | 3,500 | 12,500 | ||||
| Postage | 1,500 | 1,500 | 11,000 | ||||
| Refreshments | 2,000 | 2,000 | 9,000 | ||||
| Cash reimbursement | 11,000 | 20,000 |
Homework
Record the transactions below in the petty cashbook of Torugbene Multiple Ventures International using the following analysis columns; fuel, cable subscription, recharge card, office cleaning and transport.