Petty Cash Journal Entries
This video describes how to set up a petty cash fund and how to reimburse it once it has been used.
SmartAccounting - Petty Cash Advance
Since petty cash register does not form part of the double entry system, payments made through petty cash are subsequently posted into the cash ledger and the general ledger. Example On 1st January, petty cash of $100 is introduced.
The petty cash journal entry is a debit to the petty cash account and a credit to the cash account. The petty cash custodian refills the petty cash drawer or box, which should now contain the original amount of cash that was designated for the fund.
Petty Cash Funds Definition. Petty cash funds are advances (loans) from the College to individual regular full-time employees for the benefit of the institution.
The Cash account in the General Ledger. The Accounts Receivable account in the next figure increases with debits and decreases with credits. Ideally, this account also has a debit balance that indicates the amount still due from customer purchases.
The petty cash book is a formal summarization of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Thus, the book is part of a manual record-keeping system.