Recording of Transactions - 2 — Account STD 11 Commerce — Question

Entries in the Petty Cash Book are posted into the ledger accounts at the end of the specified period, i.e., month or quarter as the case is. Petty Cash Book is considered as a memorandum book. The petty expenses are not directly posted to ledger accounts. A Petty Cash Account is maintained in the ledger. When Petty Cash is advanced to the petty cashier, the Chief Cashier records it on the credit side of Cash Book as “By Petty Cash A/c". At the end of specified period (say a week, a fortnight or a month), for the total expenses paid a Journal entry is passed by debiting individual petty expenses and crediting to Petty Cash Account. All the accounts reating to petty expenses are maintained in the ledger individually. Posting is made on the debit side of these accounts by writing "To Petty Cash A/c” in the Particulars Column.