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Bookkeeping › Cash Book & Petty Cash

How is petty cash treated at the period end for the financial statements?

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Answer

The petty cash balance (cash in hand) is a current asset shown with cash and bank. At period end, ensure the float is reconciled (cash plus vouchers equal the imprest), any unreimbursed expenditure is posted to the correct expense accounts (accrue if reimbursed after year-end), and the physical cash is counted and agreed to the book balance.
Real-world example At year-end the petty cash is counted, agreed to the book, and any spent-but-unreimbursed amount is posted to expenses.

Common follow-ups: Where does petty cash appear on the balance sheet? | Why post unreimbursed spend before year-end?

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All 26 Cash Book & Petty Cash questions