help petty cash book

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion

Help, can anyone please tell me about the postings on the petty cash.

Eg

payments admin/marketing vat
4.05 4.05
15.00 12.77 2.23

1905 16.82 2.23

Is the vat DR on vat
Is the admin/markating a DR
Payments!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:help petty cash book

    Mmm not sure I totally have got to grips with your question there, but basically cash is an asset and thus a debit balance so a payment would be to reduce that debit balance and therefore a credit. The opposing debit is the relevant expense account and the VAT control account.

    Hope this helps
    Adrian
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:help petty cash book

    hi

    your petty cash entries should be:

    Dr Expense a/c

    (with either gross value or net - depending whether you are able/allowed to extract the vat) - there are rules on this

    Dr VAT

    with the vat value on items you are allowed to claim vat back)

    Cr Petty Cash

    hope this helps, please ask if you need any further help. Chris :roll:

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