How to prepare a Petty cashbook
How to prepare a Petty cashbook Petty cash book preparation in one of the simplest task a student may be asked to do, however most learners do not know how to prepare it. Most business have no idea of what a petty cashbook is and those who know barely maintains one. To prepare a petty cash book, you begin by recording the opening float and documenting every subsequent payment supported by a voucher. You then classify these expenses into specific analysis columns—such as postage, stationery, or transport—while directing payments for creditors to the personal ledger column. This systematic process concludes with calculating the closing balance to facilitate accurate reimbursement and reconciliation. When teaching this topic, I make sure my trainees identify the two petty cashbook problems i.e a) Petty cashbook using imprest system b) Petty cashbook without imprest system. Petty cashbook without im...