Back to results for “Books of Prime Entry”
Bookkeeping › Cash Book & Petty Cash

How is the petty cash book reimbursed and posted?

Intermediate

Answer

At the end of the period, total the analysis columns. The total spent is reimbursed from the main cash book (Dr petty cash, Cr bank). Each analysis-column total is posted to the debit of the relevant expense account in the nominal ledger, and any VAT column to the VAT account.
Reimbursement: Dr Petty Cash / Cr Bank (amount spent)
Analysis totals: Dr Postage, Dr Stationery, Dr VAT (from columns)
Real-world example Monthly, the postage and stationery column totals are posted to their expense accounts and the float topped up from the bank.

Common follow-ups: Which account is credited on reimbursement? | Where do analysis totals go?