Petty Cash Book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc. These are expenses which are incurred day after day; usually, petty expenses are large in quantity but insignificant in value.

Understanding Petty Cash Book
The petty cash book is a financial record used to track small, everyday expenses that are paid in cash. It serves as a subsidiary ledger to the main cash book and helps businesses manage minor expenditures efficiently.
Key Features of Petty Cash Book:
- Purpose: To record low-value transactions that do not warrant writing checks or using a bank transfer.
- Convenience: It simplifies the process of managing cash for small purchases, thus saving time and effort.
- Custodian: Typically managed by a petty cash custodian who is responsible for disbursing and replenishing the cash fund.
Structure of the Petty Cash Book:
- Date: The date of each transaction.
- Description: A brief description of the transaction (e.g., office supplies, postage).
- Amount Paid: Amount of cash spent on each transaction.
- Balance: Running total of the petty cash balance after each transaction.
Cash Book with Double Column:
A cash book with a double column is used to record both cash and bank transactions simultaneously. This method enhances visibility and control over cash flow.
Key Components of a Double Column Cash Book:
- Two Columns: One for cash transactions and another for bank transactions.
- Debit and Credit: Each transaction is recorded as a debit or credit, depending on whether it is an inflow or outflow.
- Summary: At the end of the period, balances for both columns are summarized, aiding in financial reporting.
Benefits of Using a Cash Book with Double Column:
- Comprehensive Overview: Provides a clear picture of cash and bank position.
- Efficient Record-Keeping: Facilitates easier tracking of transactions.
- Improved Control: Enhances financial management and minimizes errors.