Answer Expert Verified. Answer is b, Travelling expenses. Petty cash book records “petty or small expenses” that are impractical to be paid in check. Travelling expense is a petty expense that are paid in cash.
What are included in petty cash fund?
A petty cash fund is a small amount of bills and coins that an organization keeps on the premises to pay for minor expenditures….Examples of the items that may be paid for from the petty cash fund are:
- Flowers.
- Food.
- Office postage.
- Presents.
- Supplies.
- Taxi charges.
What is petty cash book how it is prepared?
To avoid a large number of small payments, a separate cash book is made which is maintained by a petty cashier, who is paid a small amount at the beginning of the period called impress amount. When petty cashier spend the money, he is reimbursed the same amount to make further small expenditure.
How do you classify petty cash?
Petty cash appears within the current assets section of the balance sheet. This is because line items in the balance sheet are sorted in their order of liquidity. Since petty cash is highly liquid, it appears near the top of the balance sheet.
Who prepares the petty cash book?
petty cashier
To avoid a large number of small payments, a separate cash book is made which is maintained by a petty cashier, who is paid a small amount at the beginning of the period called impress amount. When petty cashier spend the money, he is reimbursed the same amount to make further small expenditure.
Where is petty expenses recorded?
Who keeps the petty cash book?
The person responsible for spending petty cash and recording it in a petty cash book is known as petty cashier.
What account is petty cash under?
Petty cash is usually a relatively small amount, and is grouped with the general cash account on the balance sheet. The financial statements are key to both financial modeling and accounting. in current assets. Obviously, companies don’t want lots of cash just sitting around in the office.
