Thank you for the wonderful lecture I have a question with regards to petty cash. As debit/credit actions are to be done when receiving cash from the bank (100 $ in your example) and when making expenses from it (10$ for cleaning and 20$ for charity in your example). Kindly could you clarify if these “petty” debit/credit actions be carried-out into the general ledger accounts as they occur on daily basis? Or should the bookkeeper wait until a certain period like weekly or monthly?
They will usually be entered into the general ledger monthly, in total. However this is not a rule – it is up to the business to decide how often to enter them 馃檪
Sir, could you please explain what are petty cash payment vouchers and petty cash receipt vouchers? “CASH IN BOX PLUS PAYMENT VOUCHERS PLUS IOU FORMS LESS RECEIPT VOUCHERS __________________________ IMPREST AMOUNT:
Payment vouchers are papers stating the amounts of cash paid (usually the bill from the shop). Receipt vouchers are papers stating the amounts of cash received.
jojufijo says
Thank you for the wonderful lecture
I have a question with regards to petty cash. As debit/credit actions are to be done when receiving cash from the bank (100 $ in your example) and when making expenses from it (10$ for cleaning and 20$ for charity in your example).
Kindly could you clarify if these “petty” debit/credit actions be carried-out into the general ledger accounts as they occur on daily basis? Or should the bookkeeper wait until a certain period like weekly or monthly?
John Moffat says
They will usually be entered into the general ledger monthly, in total. However this is not a rule – it is up to the business to decide how often to enter them 馃檪
jojufijo says
Thank you 馃檪
John Moffat says
You are welcome 馃檪
asifacca4 says
Sir, could you please explain what are petty cash payment vouchers and petty cash receipt vouchers?
“CASH IN BOX
PLUS PAYMENT VOUCHERS
PLUS IOU FORMS
LESS RECEIPT VOUCHERS
__________________________
IMPREST AMOUNT:
Like we have in the stated formula.
John Moffat says
Payment vouchers are papers stating the amounts of cash paid (usually the bill from the shop). Receipt vouchers are papers stating the amounts of cash received.