Petty Cash Register
Businesses keep a small cash float for minor day-to-day expenses — courier, tea, stationery, local conveyance — that are impractical to pay by cheque or bank transfer. The petty cash book records every such payment against a voucher number and tracks the balance in the cashier's hands.
The imprest system
Under the imprest system the petty cashier is given a fixed float (say ₹10,000). At the end of the week or month the main cashier reimburses exactly the amount spent, restoring the float. This makes control easy: at any time, cash in hand + vouchers = imprest amount.
How this tool works
Enter the imprest received as a Receipt and each expense as a Payment with date, voucher number and particulars. Receipt and payment columns and the running balance are computed automatically; the summary shows total receipts, total payments, cash in hand and the number of vouchers, with a month-wise bar chart of spending. The tool warns if the balance ever goes negative, which usually means a reimbursement entry was missed. Data stays in your browser and can be exported to Excel or CSV.
Worked example
Imprest received ₹10,000. Payments: courier ₹350, tea and refreshments ₹420, printer paper ₹280, auto fare ₹150. Total payments ₹1,200; cash in hand ₹8,800. At month end the main cashier reimburses ₹1,200 and the float returns to ₹10,000.
Analytical petty cash book
Larger offices use a columnar (analytical) petty cash book with separate columns for conveyance, postage, stationery and refreshments so that monthly totals can be posted directly to the respective expense ledgers. You can achieve the same here by using a consistent prefix in the particulars (for example "Conveyance: auto fare") and filtering the Excel export.
Good practice
- Number vouchers serially and attach bills.
- Keep cash payments to a single person below ₹10,000 per day (Sec 40A(3)) to avoid disallowance; cash expenditure above ₹2 lakh per transaction is prohibited under Sec 269ST.
- Count the cash and reconcile with this register at every reimbursement.
Frequently Asked Questions
What is the difference between petty cash and the main cash book?
The main cash book records all cash and bank transactions; petty cash is a sub-ledger for small expenses out of a fixed float, posted to the main books in total periodically.
Can the petty cash balance be negative?
No. Cash cannot be overspent. A negative running balance indicates a missing receipt or a wrong amount.
How do I start a new month?
Either continue the same register (the balance carries forward) or export to Excel, clear all rows and enter the opening balance as the first receipt.
Is there a limit on cash expenses for tax purposes?
Payments above ₹10,000 to a person in a day otherwise than by banking channels are disallowed under Sec 40A(3) of the Income-tax Act.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.