date, voucher number and particulars are common for both receipts and payments. Box Advantages of Maintaining Petty Cash Book . Saving of Time and efforts of chief cashier : The chief cashier is not required to deal with petty disbursements. He can concentrate on cash transactions involving large amount of cash.
It saves time and labour and helps chief cashier to discharge his duties more effectively . Effective control over cash disbursements: Cash control becomes easy because of division of work. The head cashier can control big payments directly and petty payments by keeping a proper check on the petty cashier. This way the chances of making frauds and embezzlements become very difficult.
. Convenient recording: Recording of petty disbursements in the main cash book makes it bulky and unmanageable. Further, the materiality principle requires that insignificant details need not be given in the main cashbook. This way the cash book reveals only material and useful information.
Recording of such small payments becomes easy as the totals of different types of expenses are posted to ledger. It also saves time and effort of posting individual items in the ledger. In nutshell it can be stated that preparation of petty cash book is a cost reduction control measure.