what if cash book and petty cash book are linked?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I might not be asking the right question, but could anybody please answer it.

Thanks,

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:what if cash book and petty cash book are linked?

    How exactly do you mean they would be linked? In most sytems, computerised or manual, when you need the occasional "top-up" to the PCB, you will record a journal to credit from the cash book (more commonly referred to as the bank account) and debit to the petty cash book.

    When recording a small expense, for example £1.50 on stamps, you will generally record a journal to debit the 'Carriage and postage' account (which will increase by £1.50) and credit the 'Petty cash account' (which will reduce by £1.50).

    This is how we do it, but it all depends how your own company's system would do it!

    Does this help at all or were you after something else?

    Robert

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