Page 24 - IC26 LIFE INSURANCE FINANCE

3. Petty cash book: It is purely a subsidiary book in a business there are many small

payments like for telegram, taxi fare, cartage, conveyance. If these payments are included in
the cash book, it will be over burdened, therefore, a separate cash book is maintained for
these small expenses.

Imprest System of petty cash: It is convenient to entrust a definite sum to the petty cashier
in the beginning of the period and to reimburse him for payments made at the end of the
period. The format of petty cash book is as given below :

Petty Cash Book

Receipts Date VNo. Particulars Total Conveyan Cartage Station Postage Sundries

ce ary &
Telegram

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