Petty cash Control Account

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi dont do if anyone can help, but for some reason i finf it hard working on the petty cah control account, and i was wondering if there was a good way of remembering of how to do it.<BR><BR>Thanks for your help. Zoe<BR><BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Petty cash Control Account

    The Petty Cash Control Account is just like the bank account.<BR><BR>Monies paid in to restore the balance in the petty cash are recorded as debits.<BR>Monies paid out are recorded as credits.<BR><BR>e.g Your petty cash has a balance of £100.<BR><BR>You or another employer submitts receipts for the purchase of stationery costing £11.<BR><BR>The journal entry would be :<BR>Debit stationery £11<BR>Credit Petty cash control £11<BR><BR>The balance in your petty cash account will be £89 pounds. When you restore the balance you:<BR><BR>Debit Petty cash control £11<BR>Credit Bank Account £11 Assuming you have taken the money from the company's bank account<BR><BR>Hope that helps
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Petty cash Control Account

    Thanks for your help. Zoe.

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