Petty cash book format: imprest system + free PDF template

Quick frame: A petty cash book records the small daily expenses your accountant doesn't want polluting the main ledger — auto fuel, courier, stationery, tea bills. The imprest system keeps it clean. Generate the daily ledger PDF with the Petty Cash Book Generator.

What the imprest system looks like

1. Float — cashier starts the period with a fixed amount, say ₹5,000.
2. Spending — through the period, the cashier disburses cash against vouchers, gradually depleting the float.
3. Reimbursement — at period end, cashier submits the petty cash book + vouchers to the main accountant. The exact spend is reimbursed, restoring the float to ₹5,000.

So the imprest is self-correcting — at any point, [Cash on hand] + [Vouchers] = [Original imprest]. Easy to audit.

What goes in each entry

• Date of the expense
• Voucher number (continuous, your own series)
• Particulars — what was spent on
• Account head — Office expenses / Travel / Postage / Refreshments
• Receipt amount (rare — usually for refunds or float top-ups)
• Payment amount — the actual cash out

End-of-period totals: opening balance + total receipts − total payments = closing balance.

The ₹10,000 cash limit per voucher (Sec 40A(3))

Section 40A(3) of the Income Tax Act: cash payment above ₹10,000 to a single person in a day is disallowed as business expenditure. So if you spend ₹15,000 in cash on office supplies to one vendor, you cannot claim it as expense.

Workaround: pay via UPI / NEFT and record the bank transaction in main books. Petty cash is for sub-₹10,000 expenses only.

Account heads to use

Common heads:

• Office expenses (stationery, printing, water, tea)
• Travel — local (auto, taxi, fuel reimbursement)
• Postage and courier
• Cleaning and housekeeping
• Repairs and maintenance — minor
• Conveyance to staff
• Refreshments and meeting expenses

Keep heads stable across months so monthly comparisons are meaningful.

Reconciliation discipline

At end of each week / month:

1. Count cash physically.
2. Sum all unspent vouchers.
3. Verify: physical cash + vouchers = imprest amount.
4. Submit vouchers, get reimbursement.
5. Carry over closing balance to the next period (only if it differs from the imprest).

Any variance triggers an immediate "where did the cash go?" review.

GST input credit on petty-cash bills

You CAN claim ITC on petty cash GST-paid bills (e.g., a hardware shop bill with the company's GSTIN), provided:

• Supplier's GSTIN is on the bill
• Your GSTIN is mentioned on the bill (most won't add it for sub-₹10,000 unless you ask)
• The bill is uploaded by the supplier in their GSTR-1 (so it appears in your GSTR-2B)

For sub-₹200 or unregistered supplier bills, no ITC.

Common mistakes

• No voucher numbers — month-end reconciliation becomes guesswork.
• Mixing personal and business spend — even ₹50 on personal cigarettes muddies the book.
• Cash above ₹10,000 — disallows the expense and triggers an audit query.
• Not closing the imprest at year-end — opens the door to "missing cash" claims.

Related tools

• GST Invoice Generator
• Cash Receipt Generator
• Working Capital Calculator

Q. How much float should the petty cashier hold? A. About 1.5× the average monthly petty cash spend. So if you spend ~₹3,000/month, hold a ₹5,000 float.

Q. Can the petty cash book be electronic? A. Yes. Excel or accounting software with a "petty cash" account works. The PDF version is for daily / monthly reporting and audit.