912 Analytical Petty Cash Book The most advantageous method of recording petty cash payment is to enter them in the Analytical Petty Cash Book. In the Analytical Petty Cash Book, a separate column is used for each commonly occurring item of expenditure such as postage, stationery, travelling, wages, and the like. When a petty expense is recorded in the right-hand total payment column, the same amount is immediately recorded in the appropriate analysis column. At the end of a particular period, all the analysis columns are added and posted to the debit side of the respective accounts. Under imprest system of petty cash, the new petty cash will be reimbursed, at the end of each week or other convenient period, with the exact amount he has spent. The petty cashier will start the period with same amount of money-the imprest amount. The following points are worth noting : 1. The pages are not divided down the centre, major space is provided for credit side and the debit side contains only two columns-money column and cash book folio column. 2. The chief item of receipt is the original imprest. Other items include the money collected from private telephone calls, sale of old newspapers, and so on. Money disbursed is recorded in the credit side and then analysed out into number of analysis columns which serve as collection columns for a large number of small items. Thus all the stationery is collected in the Stationery column. 4. Certain payments cannot be added together in the above way, for example, small payments to creditors. A special column is provided, under the heading "Ledger Account to record these types of payments. These items are posted separately to their respective accounts in the ledger. Balancing off the Petty Cash Book At the time of balancing off the Petty Cash Book, a line is drawn right across the figures on the credit side and all the columns are added up. Then only the analysis columns are closed with a double line, the total column being left open. The balance of petty cash in hand is found out after deducting the total of the payment column in the credit side from the received column in the debit side. This is inserted in the credit column, the book is balanced off and the balance is brought down. The ruling of an Analytical Petty Cash Book is given below: Dr. Analytical Petty Cash Book Cr. C.B. Date Particulars Petty Total Postage Travelling Statio- Sundry Ledger Folio Cash Payment Expenses nery Expenses Account Folio Cash Recei ved V.No Illustration 10 From the following transactions for the month of March 2017, draw up a Petty Cash Book in analytical form with : (i) Postage and Stamps; (ii) Coolie and Cartage; (iii) Printing and Stationery; (iv) Conveyance; (v) Miscellaneous; and (vi) Ledger Account - columns. Show the reimbursement by the General Cashier to the Petty Cashier on 1.4.2017 under the imprest system of petty cash: (all figures in ) 1 Petty cash balance 22.00 22 10.00 was paid to coolies for shifting office fumiture Reimbursement by the general cashier 278.00 23 Mr Ram Murty was paid 28.50 out of petty cash. 5 Conveyance 18.00 paid to an employee. 27 Local traveling expenses reimbursed to office peon 9 Postal stamps bought 4.50 29 The driver of the office car was given 15.00 to pay 16 Cost of blank papers and carbon papers 11.00 the 'fine' for violation of traffic rules. 19 Tips given to the office peon for extra work 5.00 31 12.00 was spent to send a registered letter by post 21 Purchased memo-books for 143.00, carrying cost on 2.00 the same amounted ed to 4.00