Question

explain the method of posting in cash book​

Answer 1

The amount is first recorded in the 'total payments' column and then in the relevant column provided for it. The Petty Cash Book is balanced periodically. The difference between the total receipts and total payments is the balance with the petty cashier. ... A 'Petty Cash Account' is opened in the ledger.

Answer 2

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In petty cash book,

1. Write down the balane b/d in the amount received column

2.classify all the postings to the respective columns

a. Sundry expense must include refreshments,tip to peon and other expenses which are not repetitive in nature.

b. If any income earned then record in amount received column eg selling of scrap

c. Ledger will include purchase of chairs,amount paid to party,salary paid etc.

3. After entering all the postings, balance each column .

a . We should total the TOTAL PAID column and AMOUNT RECEIVED column

b.if total paid column is less then total of TOTAL PAID COLUMN MUST BE SUBTRACTED FROM AMOUNT RECEIVED COLUMN.

c. After doing the following calculation the amount must be written as balance