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When Petty Ca...

Question

When Petty Cash is advanced to the Petty Cashier, the main cashier will record it on the debit side of Cash Book.

A

True

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B

False

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Solution

The correct option is B False
When advance is given to petty cashier then it will reduce the main cash balance. Therefore, It should be recorded in the credit side of the cash book.

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Q. Petty cashier records petty cash received on debit side.

Q. Petty cash vouchers are used to record entries on the debit side of the petty cash book.

Q. Imprest system of Petty Cash book is system in which head cashier first estimates the total petty expenses of a particular period say month or fortnight and estimated amount is given to petty cashier in advance to meet petty expenses of particular period.

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4. It is automatically balanced.

Q. Journal entry for cash handed over to the petty cashier is :-
Petty Cash A/c Dr.
To Cash A/c

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