Petty cash refers to a small amount of money on hand for official use. It is an accessible cash store maintained by business organizations. Small expenditures can be covered through this amount. This eliminates the need to write a check and make a bank withdrawal. However, just like the sum of money stored in a bank, a proper account must be maintained for petty cash. This job is assigned to a reliable employee or accountant who is referred to as the petty cash custodian. He or she is answerable to the authorities for all the withdrawals made from this store.…
