Petty Cash (Meaning) | Example | Template

In this video, we discuss about Petty Cash with top example and how we pass journal entries for petty cash?

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐏𝐞𝐭𝐭𝐲 𝐂𝐚𝐬𝐡?
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Petty Cash is small amount of money kept in office for use of small daily spending.

𝐖𝐡𝐨 𝐢𝐬 𝐂𝐚𝐬𝐡𝐢𝐞𝐫?
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Cashier is the most trusted person in the monetary team because he owns the organization's hard cash.

𝐖𝐡𝐨 𝐢𝐬 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐬𝐞𝐫?
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Authoriser is person responsible for approval of a transaction.

𝐖𝐡𝐨 𝐢𝐬 𝐑𝐞𝐜𝐞𝐢𝐯𝐞𝐫?
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The receiver is one who claims the amount and is eligible to receive the organization's cash.

𝐏𝐞𝐭𝐭𝐲 𝐂𝐚𝐬𝐡 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐄𝐱𝐚𝐦𝐩𝐥𝐞
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On April 10, 2017, ABC LBP creates a small cash fund of $ 17,000/-. Following are the repayment of petty cash funds in April 2016.

Tea and Snacks 1,556/-
Toll Tax 3,450/-
Printing & postage 1,750/-

For the above transaction, we pass journal entries.

Solution:

1) Petty Cash A/c Dr 17,000

To Cash at Bank 17,000

(Being Petty cash fund created or being amount withdrawn from the bank for the petty cash fund)

2) Tea and Snacks 1,556
Toll Tax 3,450
Printing & postage 1,750

To Petty Cash A/c 6756

(Being disbursement from petty cash fund)

To know more about 𝐏𝐞𝐭𝐭𝐲 𝐂𝐚𝐬𝐡, you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:-

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