explain the methods of balancing and posting the petty cash book .
Answers
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
Answer:
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