Petty cash is a small amount of cash kept on hand by a business for the purpose of covering small expenses. It is used for day-to-day expenses that are not significant enough to warrant writing a check or using a credit card. Petty cash is typically managed by an appointed employee, known as the petty cash custodian.

Usage of petty cash can vary depending on the needs of each business. However, there are certain expenses that are commonly paid using petty cash. One such expense is postage and conveyance.

Postage refers to the cost of sending mail or packages. Many businesses have regular mailings that need to be sent out, such as invoices, letters, or promotional materials. The cost of postage can be paid using petty cash, as it is a small and frequent expense that can easily be covered from the petty cash fund.

Conveyance refers to the cost of transportation or travel. This can include expenses such as local transportation for business meetings or delivery services. Petty cash can be used to pay for these types of expenses, as they are typically small amounts and occur regularly.

By allowing petty cash to be used for postage and conveyance expenses, businesses can ensure that these costs are effectively managed and paid for in a timely manner. It also eliminates the need for employees to submit expense reports or reimbursement requests for small and routine expenses.

It is important to note that petty cash should not be used for salary payments (option B). Salaries are typically larger expenses that are paid on a regular basis and should be accounted for separately. Paying salaries from petty cash could result in inadequate recordkeeping and a lack of transparency in the payroll process.

Similarly, the purchase of furniture and fixtures (option C) and the purchase of raw material (option D) are not suitable uses for petty cash. These types of expenses are typically larger and should be properly tracked and documented in the business's accounting system.

In conclusion, petty cash is commonly used to pay for expenses relating to postage and conveyance. This allows businesses to effectively manage and cover small and routine expenses without the need for formal reimbursement processes. However, it is important to ensure that petty cash is not used for larger expenses such as salaries, furniture, fixtures, or raw materials.