How To Record Liquidation of Petty Cash Fund in a Cash disbursement book?

From last month petty cash, there is a balance forwarded of $500. Then another check with the amount of $4,500 was issued to replenish the monthly petty cash of $5.000? How will I record it in the cash disbursement book?

Hello and thank you for your question.

You will record the replenishment of the monthly petty cash in the cash disbursement book as follows:

DEBIT $4,500 to Petty Cash
CREDIT $4,500 to Bank Account

Petty Cash in Simply Accounting

I want to set up Petty Cash thru Simply Accounting. What are the general journal entries to set up PCash, how do i enter the expenses and then finally, how do i replenish the PCash?

Thank you,

Sara

Hello Sara,

Thank you for your question.

Using a $500 dollar balance, you will setup petty cash as follows:

CREDIT 500 Cash Account (Asset)
DEBIT 500 Petty Cash Account (Current Asset)

Using 350 in example expenses, you will enter the expenses as follows:

DEBIT 50 Postage Expense
DEBIT 20 Printing Expense
DEBIT 10 Tolls Expense
DEBIT 270 Office Expense
CREDIT 350 Petty Cash

You will record the replenishment as:

CREDIT 350 Cash
DEBIT 350 Petty Cash

Petty Cash Not Entered Into Accounting Program

by Joe

Hi,

I have just taken over an Administrative Assistant position from someone that was there for many years. She did not enter petty cash into the accounting program and just did it by hand in a general journal.

I want to set up the petty cash account from where she left off. I don't know what the general journal entries would be in Simply Accounting. I have $30 as a PCash starting balance, $107 in expenses and I would like to replenish the pcash total amount to be $150.00.

Please help!

Thanks,
Joe

Hello Joe,

Thank you for your question.

Your entry for the starting balance and expenses is:

$ 30 DEBIT to Petty Cash (Asset Account)
$107 DEBIT to Office Expenses (Expense Account)
$137 CREDIT to Opening Balance Equity (Equity Account)

Your entry for replenishing the account to $150 is then:

$120 DEBIT to Petty Cash Account (150-30=120)
$120 CREDIT to Bank Account

Petty Cash Reconcilliation Form

Hi,

Do you have a sample petty cash reconciliation form that I could use? I find petty cash so confusing so if I can see a form, it will help me with the reconciling.

Thank you for all of your help!

Joe

Petty cash replenishment

by Laura
(BC, Canada)

Can you use the cash payments journal to record the replenishment of your petty cash, or should this entry be made in the general journal?

You can use both the cash payments journal or the general journal to replenshish your petty cash.

Using the cash payments journal, you would simply enter the amount as a payment and enter petty cash as the account for the transaction.

Using the general journal, you would credit the bank account and debit the petty cash account.

Setting Up Petty Cash

I am setting up Petty Cash for the first time in my accounting software. Petty Cash existed before but it was manual and the records were done manually. I want to move forward from today on and set it up thru the accounting software. So that being said, what would the general journal entry be to set up petty cash to $300.00? (The check from the bank will be made out to A. Adams Petty Cash, office manager)
All of the previous receipts come to a total of $141.12. What is the general journal entry for these? Once the 2 entries above are entered, what is the entry to replenish the petty cash back up to $300.
I hope this isn't too confusing...this is too confusing for me!

Many thanks!

Jamie

Hello Jamie,

Thanks for your question, lots of people find petty cash confusing! :)

The journal entry to setup petty cash to 300 is:

DEBIT 300.00 Petty Cash
CREDIT 300.00 Cash

The jounal entry for the receipts totaling 141.12 using one general account is:

DEBIT 141.12 Office Expenses
CREDIT 141.12 Petty Cash

The journal entry to replenish petty cash back up to 300 is:

DEBIT 141.12 Petty Cash
CREDIT 141.12 Cash

Thanks again for your question.