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Petty cash is Current Assets. It is a current asset (CA) to the business because it brings future economic benefit and can be used, consumed and converted into cash with the 12 months period.
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∙ 13y ago
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How do you establish the journal entry for petty cash?
[Debit] Petty Cash account [Credit] Cash account
Does the balance of the petty cash account increase when the petty cash fund is replenished?
No.
WHAT IS the correct entry to replenish a petty cash fund?
Dr Bank Account Cr Petty Cash Account
Issued a check to establish a petty cash fund of 1400?
Debit Petty cash account 1400 Credit Cash account 1400
Is a petty cash account an asset with a normal credit balance?
Petty Cash is an asset account with a normal Debit balance.
Know the journal entry for reimbursing the petty cash account?
[Debit] Petty Cash account [Credit] Cash account
How do you establish the journal entry for petty cash?
[Debit] Petty Cash account [Credit] Cash account
Is petty cash a fixed cost?
No, petty cash is a control account not an expenditure account.
Does the balance of the petty cash account increase when the petty cash fund is replenished?
No.
What is the correct entry to replenish the petty cash fund?
Dr Bank Account Cr Petty Cash Account
WHAT IS the correct entry to replenish a petty cash fund?
Dr Bank Account Cr Petty Cash Account
Issued a check to establish a petty cash fund of 1400?
Debit Petty cash account 1400 Credit Cash account 1400
Is a petty cash account an asset with a normal credit balance?
Petty Cash is an asset account with a normal Debit balance.
Is petty cash account in balance sheet?
Petty cash is also Cash so like other cash account it is also shown in balance sheet.
Is the entry to establish a petty cash account a debit to petty cash and credit to cash?
yes. the entry should be: petty cash fund debit cash in bank credit
The type of account and normal balance of Petty Cash is a?
Petty Cash is a current asset (it both has value and is liquidated in less than 12 months). Since Petty Cash is an asset, its normal balance is a debit, as asset accounts are debits.
Which account is cash available for minor expenditures is placed in?
it is Petty cash
