setting up nominal ledger records - petty cash
student17
Registered Posts: 17
Hello,
Can someone confirm which is the correct way of setting up a petty cash balance when you are given (as a guide):
Opening Trial Balance as at 1 Oct
-Bank £16000
-Petty Cash £160
Am I supposed to open Petty Cash through setting up its Opening balance as £160?
Or setting up Current Bank Account opening balance as £16160 (or setting it up as £16000) and transferring £160 over from Current Bank Account to Petty Cash Account?
It makes sense to me to set up both accounts using opening balance option as stated in Trial Balance rather than using a bank transfer option to put the money into Petty Cash.
Thank you.
Can someone confirm which is the correct way of setting up a petty cash balance when you are given (as a guide):
Opening Trial Balance as at 1 Oct
-Bank £16000
-Petty Cash £160
Am I supposed to open Petty Cash through setting up its Opening balance as £160?
Or setting up Current Bank Account opening balance as £16160 (or setting it up as £16000) and transferring £160 over from Current Bank Account to Petty Cash Account?
It makes sense to me to set up both accounts using opening balance option as stated in Trial Balance rather than using a bank transfer option to put the money into Petty Cash.
Thank you.
0
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