PETTY CASH BOOK ENTRY
Thus, the book is part of a manual record-keeping system. There are two primary types of entries in the petty cash book, which are a debit to. Besides maintaining a main or general cash book, many companies also maintain a small cash book known as petty cash book to record small day to day . Guide to what is Petty Cash Book. Here we discuss the format of Petty Cash Book , Types of Petty Cash Systems including the Ordinary and Imprest System.
|Language:||English, Spanish, Indonesian|
|Genre:||Politics & Laws|
|ePub File Size:||MB|
|PDF File Size:||MB|
|Distribution:||Free* [*Regsitration Required]|
A petty cash book is a ledger kept with the petty cash fund to record amounts that For example, if you bought a screw at the corner hardware store, you might. In this lesson, we'll review what petty cash is used for and describe how. how funds are used and allocated throughout a company's accounting books. The journal entry to start a petty cash fund only happens once - when the petty cash is . The petty cash account is a current asset and will have a normal debit . Thus, using a petty cash fund avoids the need for making many entries for small.
Wasting Assets: The assets that depreciate through "wear and tear", whose values expire with lapse of time or that become exhausted through working are known as wasting assets.
This is a subclass of fixed assets e. Intangible or Fictitious Assets: There are assets which have no physical existence. Which can neither be seen with eyes not touched with hands. These are called intangible assets or fictitious assets. They do not represent any thing valuable. They include debit balance of profit and loss account, goodwill etc.
Contingent Assets: A contingent asset is one which comes into existence upon the happening of a certain event. If that event happens the asset becomes available, otherwise not.
For example uncalled capital of a limited company. Outstanding Assets: Expenses paid in advance i. Classification of Liabilities: The liabilities of a business are classified as follows: Fixed Liabilities: These are the liabilities which are payable immediately or in the near future.
These liabilities are payable after a long period. Long term loans, capital of the proprietor are the examples of such kind of liabilities.
Current Liabilities: These are the liabilities which are payable immediately or in the near future, such as creditors, bank loans etc. Contingent Liabilities: Contingent liabilities are those liabilities which arise only on the happening of some event. The event may or may not happen. Thus a contingent liability may or may not involve the payment of money.
Examples of contingent liabilities are: 1.
Liabilities on bills discounted: In case the bill is dishonored by the acceptor, the holder may be called upon to pay the amount to the discounter. Liability under guarantee: In case the debtor fails to fulfill his obligation, the man who has given a guarantee or surety have to make good the loss to the creditor.
Liability in respect of a pending suit: A suit pending against a person in a court is a contingent liability because if the decision of the court goes against him, he may thereby become liable to pay compensation. Contingent liabilities are not recorded in the books not they are included in the balance sheet. They are simply referred to by way of foot notes on the balance sheet. Outstanding Liabilities: Outstanding expenses and unearned income are examples of outstanding liabilities.
Classification of Capital: The surplus or excess of assets over liabilities is called the capital or the proprietor. Capital may be classified as follows on the basis of the capital fund invested: Trading Capital: The portion of the funds of a concern which is represented by the fixed and floating assets is called the trading capital Fixed Capital: The portion of the funds of a concern which is represented by the fixed assets is called fixed capital.
Circulating Capital: The portion of the funds of a concern which is represented by the floating or circulating assets is called the circulating or floating capital. Working capital: It is the amount which remains for the working of the business after the liabilities for acquiring the fixed assets have been discharged.
The excess of the floating assets over the floating liabilities is also called the working capital. Loan Capital: The debentures and other fixed loans are sometimes called loan capital.
Watered Capital: It is represented by fictitious assets.
Types of Petty Cash Book in Accounting
Valuation of Assets: In order to exhibit a true financial position of a business , assets are to be valued carefully. The basis upon which the various assets are valued depends to some extent on the nature of the business and the objects for which the assets are held.
Unlock Your Education See for yourself why 30 million people use Study. Become a Member Already a member?
What teachers are saying about Study. Earning Credit.
Earning College Credit Did you know… We have over college courses that prepare you to earn credit by exam that is accepted by over 1, colleges and universities.
To learn more, visit our Earning Credit Page Transferring credit to the school of your choice Not sure what college you want to attend yet? Browse Articles By Category Browse an area of study or degree level. Area of Study.
Degree Level. Bachelor Degree in Accounting. IOS Developer: You are viewing lesson Lesson 23 in chapter 3 of the course:.
Introduction to Accounting Financial Statements in Accounting Mechanics of the Accounting Cycle: Adjusting Accounts: Internal Controls in Accounting Inventory and Merchandising Current and Long-Term Liabilities Business Math Communications Principles of Supervision Business Certificate Program.
Browse by Lessons Marketing Orientation: Informal Constitutional Changes: Popular Courses World Religions for Teachers: Popular Lessons Gastrulation in Frogs: Create an account to start this course today. Like this lesson Share. Browse Browse by subject. Upgrade to Premium to enroll in Financial Accounting: Homework Help Resource.
Enrolling in a course lets you earn progress by passing quizzes and exams. Track course progress. Take quizzes and exams. Earn certificates of completion.
You will also be able to: Create a Goal Create custom courses Get your questions answered. Upgrade to Premium to add all these features to your account! What best describes you? Choose one Student Teacher Parent Tutor. Who are you?
Reactivate Continue Create account with different email address. What's your main goal? Choose a goal Study for class Earn college credit Research colleges Prepare for an exam Improve my grades Homeschool Other Choose a goal Supplementing my in-classroom material Assigning my students material Teacher certification exam prep Professional development Homeschool Other Choose a goal Helping my child with a difficult subject Personal review to better assist my child Improving my child's grades My child is studying for a credit granting exam Just for fun Homeschool Other.
Your goal is required. What subject do you teach?
Petty cash book
Your answer is required. Email Email is required. Email is not a valid email. Email already in use. Log In instead. Your selected plan: You are joining: Cancel before and your credit card will not be charged. Your Cart is Empty. Please Choose a Product. Students Love Study.
Teachers Love Study. I enjoy assigning the videos to my students.Contingent Assets: A contingent asset is one which comes into existence upon the happening of a certain event. Telegram charges paid. The petty cash is a small amount of discretionary finances in the business firm of cash practiced for expenditure where it's not sensible to make the expense by check because of the trouble and price of cashing and writing singing cashing in the check of the bank.
At all times, the employee responsible for petty cash is accountable for having cash and petty cash vouchers equal to the total amount of the fund.
When Needed: Liability in respect of a pending suit: A suit pending against a person in a court is a contingent liability because if the decision of the court goes against him, he may thereby become liable to pay compensation. For example, if you bought a screw at the corner hardware store, you might note whether this download was used to fix a piece of infrastructure equipment or as a part of a product you will sell directly to a customer.
At the end of the period, the cashier submits the report and the amount spent by him is reimbursed so that the amount becomes equal to the beginning balance at the starting of the previous month. Outstanding Liabilities: Outstanding expenses and unearned income are examples of outstanding liabilities.
- CENTRIFUGAL CASTING PDF
- PROFESSIONAL SQL SERVER 2012 INTERNALS AND TROUBLESHOOTING EBOOK
- A DIETA VIVA ANA BRAVO PDF
- FRANKLIN GOTHIC BOOK TTF
- RICS PURPLE BOOK
- THE TRUE MEANING OF SMEKDAY EBOOK
- RRB EXAM PATTERN 2016 PDF
- MANOHAR PANDEY GK BOOK 2016
- VOLKER KUTSCHER EBOOK
- KPSC FDA KEY ANSWERS 2015 PDF
- HEAT TREATMENT PROCESSES PDF
- PHAGE DISPLAY A LABORATORY MANUAL PDF