What is petty cash book? Write the advantages of petty cash book?

Explanation

Petty cash book is maintained by the business to record monetary fund expenses of the business like conveyance, cartage, postage, message and alternative expenses (collectively recorded below miscellaneous expenses).

These area unit usually repetitive in nature. just in case of these transactions area unit recorded within the Main money book, their recording won't solely be inconvenient however conjointly consume tons of valuable time for the cashier and also the posting clerk. The moneyier could also be loaded down and also the cash book might become terribly large.
To avoid this, giant organisations usually appoint an additional moneyier (petty cashier) and maintain a separate cash book to record these transactions.

Advantages of monetary fund Book:

1. Division of labour: By empowerment the work to a petty cashier the most cashier is ready to appear into alternative aspects of a firm.

2. Avoid large money books: Recording repetitive transactions in an exceedingly money book makes it large, {petty money|fund|monetary fund} book makes it simple and avoids creating cash book large.

3. Less error prone: Main cashier are creating periodic audits on the monetary fund book, therefore it'll be error free.

4. simple posting: solely the petty expenses area unit recorded sporadically that makes posting easier.