5.4 Petty Cash Book In large business organization the accounting work is divided systematically There are various departments spending small amount on stationary, postage and telegram, refreshment carriage etc. The person maintaining petty cash book is known as petty cashier. The Petty cashier is given certain amount by the main cashier as an advance at the beginning of every month from which all petty expenses are paid and recorded by petty cashier. The term petty is derived from the French word "Petit" which means "small" So this book is maintained for recording small expenses which cannot be paid by cheque Types of Petty Cash Book: There are two types of Petty Cash Book which are as under 1) Simple petty cash 2) Analytical Columnar Petty Cash Book 1) Simple Petty Cash Book: Simple Petty Cash Book is divided into two sides Receipt side and Payment side. Cash or cheque received from head cashier is recorded in column of amount received and petty expenses paid 48 are recorded in amount paid column. Transactions recorded in Simple Petty Cash Book are to be posted in respective Expenses A/c in Ledger This requires additional time and labour therefore business firm do not use Simple Petty Cash Book From the following transactions prepare Simple Petty Cash Book In the Books of Noha Brothers Details Amount) 2019 Jan 01 Received from head cashier 1,200 04 Paid Telephone Charges 193 07 Paid for Mobile Charges 57 10 Purchased Office Files 125 Gave tip to peon 16 Sale of old Newspaper Gave advance to Sweety 100 22 Paid Packing charges 170 Paid for Advertisement 120 27 Paid for Cleaning charges 28 Gave Donations 30 Purchased Revenue Stamps Date 14 40 60 19 24 60 101 60