Dear persons ,
Normally I have RS 1,000
I spent for some expenses RS 500
so how to pass the journal entry and how to close this account journal entry??
On 1st on month 1000/- transfer entry from Cash to petty Cash . Create petty Cash ledger.
Contra entry
Petty Cash A/c Dr 1000/-
To Cash. A/c Cr 1000/-
( Transfer to petty Cash)
Expenses. A/c Dr. 500/-
To Petty Cash A/c Cr. 500/-
( expenses paid through petty Cash for the month)
On 31 St end of the month, Balance 500/- transfer to Cash A/c
Cash A/c Dr. 500/-
To Petty Cash. A/c Cr 500/-
( Transfer entry) .
CAclubindia
