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.

Example 1

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 −

Date	Description	Quantity	Purchase amount	Balance
July 1				300
July 2	Kitchen suppliers	1	40	260
July 5	Birthday cake	1	95	165
July 10	Lunch	1	85	80
July 25	Taxi fare	1	35	45
July 28	Paper	1	8	37

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
Office supplies		12.25
Petty cash			58.00

Updated on 09-Jul-2021 12:36:24

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