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|