How is petty cash reported on the financial statements?
The general ledger account Petty Cash is reported on the balance sheet as a current asset.
Often the balance in the Petty Cash account is combined with the balances in other cash accounts (such as checking accounts) and the total will be reported on the balance sheet as Cash.
The Petty Cash account should be replenished just prior to issuing the financial statements so that the amount of currency and coins on hand is equal to the balance in the Petty Cash account. This also ensures that the recent petty cash disburesments are recorded in their appropriate accounts—often expense accounts.
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Why closing stock doesn’t come in the Trial Balance. Whereas, that stock comes as a Opening Balance in following period.
hope you answer this>>>?<<<
for example.
i had a petty cash fund amounting $10,00(with an expense of $300 for transportation
my question is how much should be recorded in the balance sheet, cash account in petty cash fund.?in the reporting date..tnx
i don’t know if i write it $10,000 or $9,700?
you should record $9700 in B/S as current assets just like cash in hand as $300 is expensed i.e. deducted from asset
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Sachin
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Hi Dinesh,
Clo. stk. doesn’t come in trial bal…cuz we take purchases, sales, etc in trial bal….U may chk it if u like cuz a net effect of all these is nothing but clo. stk. itself.
ex: U hv a op. stk of $100, Uve purchased goods worth $500[cash & credit] & made sales of $700 makin a profit of $250….its understood that the clo. stk in the stk. ledger is $150…therefore for better analysis of stk. flow we substitute clo. stk. with all its components.
Plz lemme know if uve got any more doubt abt it. k?