Question

Head office sent Rs. 6,000 as Petty Cash to its branch during the year,

Opening and Closing balance of Petty Cash was Rs. 1,700 and Rs. 1,200

respectively with the branch. Then petty cash expenses of the branch

during the year will be​

Answer 1

Then petty cash expenses of the branch are 6500

Given:

Head office sent Rs. 6,000 as Petty Cash.

Opening and Closing balance of Petty Cash was Rs. 1,700 and Rs. 1,200.

To Find:

Then petty cash expenses of the branch

Solution:

• Opening balance: The opening balance is the amount of money a business starts with at the beginning of the reporting period, usually the first day of the month.
• The closing balance is the amount of money the business has at the end of the reporting period.

Office sent Rs 6000 as petty cash

Here, opening balance of petty cash was Rs 1700

Closing balance was 1200

We need to find the petty cash sent to that branch.

So, it will be Main petty cash + opening balance - closing balance

Hence, 6000+1700-1200 = 6500.

Therefore, then petty cash expenses of the branch are 6500.

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