Saturday, May 5, 2012

What is Petty cash book in Tally ? / Describe the Petty cash book in Tally ?

Petty Cash Book

It is a usual practice for a company to withdraw cash from the bank and then keep on using it for various purposes like traveling, Postage, Carriage, Stationery, etc.  So when the cash level reaches a minimum level more cash is added and thus this book keeps on working.  This book is called the Petty Cash Book since it takes care of the cash transaction which are very petty in nature. In this case the ledger has the various heads under which the usual amount is spent.  The first Column is receipt of the cash and then day to day cash activities are noted as per the details. At the end of week/month the totals are done and balance taken.


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