How do you account for petty cash?

Open in App

Solution

The petty cash transactions are entered into the journal on the debit side and credited to the respective cash account. The petty cashier replenishes off the money cabinet or box, which should now contain the first measure of money that was assigned for the asset. The clerk makes a journal entry to record the receipts from petty cash.

Also see:

MCQs on Journal Entries

Types of Cash Book

Suggest Corrections

Similar questions

What is petty cash book? How it is prepared?

2016		₹
Sept. 7	Balance in Hand	1,349
	Received cash reimbursement to make up the imprest
	Postage	123
	Stationery	321
	Entertainment	54
Sept. 8	Travelling and conveyance	126
	Miscellaneous expenses	11
	Entertainment	72
Sept. 9	Repairs	1,567
Sept. 10	Postage	174
	Entertainment	127
	Travelling	673
Sept. 11	Stationery	41
	Entertainment	12
Sept 12	Miscellaneous expenses	201
	Travelling	51
	Postage	483
	Repairs	30

2018		₹
Sept. 7	Balance in Hand	1,349
	Received cash reimbursement to make up the imprest
	Postage	123
	Stationery	321
	Entertainment	54
Sept. 8	Travelling and conveyance	126
	Miscellaneous expenses	11
	Entertainment	72
Sept. 9	Repairs	1,567
Sept. 10	Postage	174
	Entertainment	127
	Travelling	673
Sept. 11	Stationery	41
	Entertainment	12
Sept. 12	Miscellaneous expenses	201
	Travelling	51
	Postage	483
	Repairs	30

What is petty cash book? Write the advantages of petty cash book?

What do you understand by imprest amount in petty cash book?

Join BYJU'S Learning Program