Confused Between Cashbook And Petty Cashbooks Help ?? Accounts Experts

[Denisec4502]

A new boss has just landed me with an extra job of setting up a Receipts Cashbook and a Payments Cashbook... which is fine with different headers etc... but he has also added 2 other tabs on Excel for Petty Cash Receipts and Petty Cash Payments which are EXACTLY the same sheets as the Receipts and Payments Cashbooks with same headers - I understand this is for the CASH only payments and receipts .. I don't understand why he cannot just look at the 2 actual cashbooks as the info will just be copied and pasted from that.. also on the Cash Payments the headers are Salaries, Vehicle Expenses, Contracts... as IF we are going to pay those items in CASH?? I don't get it. We have online banking why can't he just look at that on a daily basis? Can somebody with Accounts Experience please explain. Thank you so much... confused.com !

[EdmundD]

A cashbook can be for all types of income and disbursements e.g. cheques, direct debits, bank transfers in etc. and usually reconciles to the bank statement. It usually relates to transactions in and out of a bank account.

A Petty Cash Book usually relates to an amount of cash set aside from the Payments Cash Book to cover on-site cash expenses e.g. buying stamps, milk, etc.

So a cheque from Payments Cash Book for say, £100, which when cashed will result in a payment into Petty Cash Receipts of £100. The £100 will then be accounted for as people draw money for cash expenses.