Mention two reasons for preparing petty cashbook
1. Tracking small cash expenses: A petty cashbook helps businesses keep track of small cash expenses that may not be recorded in the general ledger. This ensures that all cash transactions are properly accounted for and can help identify any discrepancies or unauthorized expenses.
2. Reconciliation and control: By maintaining a petty cashbook, businesses can easily reconcile the amount of cash on hand with the transactions recorded in the book. This helps to detect any errors, fraud, or misuse of funds, and ensures that proper controls are in place for the handling of petty cash.