The petty cash account is debited when a company establishes or increases its petty cash fund. This entry reflects the outflow of cash from the main cash account to the petty cash account. Additionally, it may be debited when replenishing the petty cash fund, as it accounts for the expenses incurred that were paid from petty cash.
[Debit] Petty Cash account [Credit] Cash account
Debited.
No.
Dr Bank Account Cr Petty Cash Account
Debit Petty cash account 1400 Credit Cash account 1400
Fluctuating fund system is handling petty cash fund wherein every expenses/voucher is debited directly with petty cash fund as a credit. The petty cash fund is debited only whenever there is a replenishment wherein the proforma entry is:
[Debit] Petty Cash account [Credit] Cash account
[Debit] Petty Cash account [Credit] Cash account
No, petty cash is a control account not an expenditure account.
Debited.
No.
Dr Bank Account Cr Petty Cash Account
Dr Bank Account Cr Petty Cash Account
Debit Petty cash account 1400 Credit Cash account 1400
Petty Cash is an asset account with a normal Debit balance.
Petty cash is also Cash so like other cash account it is also shown in balance sheet.
Cash book