# 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/-

## Solution

The solution is as follows −

DateDescriptionQuantityPurchase amountBalance
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

## Example 2

A company distributes petty cash as follows −

 Postage $5.50 Pizza (meeting)$40.25 Office supplies $12.25 ## Solution Now, all postage, meals and entertainment and office supplies are debited and the same is credited in a petty cash account. AccountParticulars/notesDebit ($)Credit (\$)
Postage
For business purpose during current period
5.50

Meals and entertainment

40.25

Office supplies

12.25

Petty cash

58.00