What is a petty cash book?

A petty cash book is a formal record of any company or organization expenditure that is made using petty cash. The record is typically sorted by date, and as of 2015, a majority of petty cash books are still physical ledger books rather than digital files.

The entries in a petty cash book are divided into two categories: debit and credit. Values and transactions listed under debit are used to record the petty cash that is given to a clerk or responsible party. Transactions listed under credit are generally more numerous and are used to show how much cash is withdrawn from the petty cash stock.