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How transactions are entered in a petty cash book?
We will understand how to enter the transactions in a petty cash book with the help of two examples which are given below.
Transactions for July, petty cashier gets Rs.300/- in advance
July 2 Paid for kitchen supplies Rs. 40/-
July 5 Paid for birthday cake Rs.95/-
July 10 Paid for lunch Rs.85/-
July 25 Paid for taxi fare Rs. 35/-
July 28 Paid for paper Rs.8/-
The solution is as follows −
|July 2||Kitchen suppliers||1||40||260|
|July 5||Birthday cake||1||95||165|
|July 25||Taxi fare||1||35||45|
A company distributes petty cash as follows −
Now, all postage, meals and entertainment and office supplies are debited and the same is credited in a petty cash account.
|Account||Particulars/notes||Debit ($)||Credit ($)|
|Postage||For business purpose during current period||5.50|
|Meals and entertainment||40.25|
- How are the same transactions entered in the passbook and cash book?
- How to prepare columnar petty cash book?
- What are Petty cash books?
- How journal entries for the imprest petty cash system are recorded?
- Explain the imprest system petty cash
- How to prepare a single column cash book?
- What are the stages in operating a petty cash fund and its advantages?
- How to compare passbook and cash book?
- What is difference between cash account and cash book?
- Prepare a ledger balance by using columnar petty cash books
- Compute the correct cash book balance
- How to prepare the Double column cash book?
- Explain columnar petty cash books and give its format
- Give an example of a triple column cash book
- Explain double column cash book and its format