Question

If the opening balance of petty cash is Rs. 500, petty cash received from Head Office is Rs. 2,100 and actual petty expense incurred is Rs. 1,000, find out its closing balance. *​

Answer 1

GIVEN : Opening Balance = 500 ; Petty Cash recieved from Head Office = 2,100 ;  Expenses of Petty = 1,000

TO FIND : Closing Balance of Petty Cash

SOLUTION :

Closing Balance of Petty Cash = Opening Balance of petty cash + Other  Pettyy Cash recieved - Expenses incurred

Closing Balance = 500 + 2,100 - 1,000

                            = 2,600 - 1,000

                            = 1,600

Closing Balance of Petty Cash is rupees 1,600.