For Petty Cash and petty expenses there must be different petty expense Accounts and at least one petty cash Account. before creating petty expense and petty cash account. we will define these
Petty expenses includes all those small expenses which are paying on cash base. for example tea expense, entertainment expense, fuel expense,utilities bill,Rent expense and all other small expenses which are paying from petty cash A/c. for this purpose cashier of the company will have some specific small amount of money that is call petty cash. the objective of petty cash is to make petty expenses from this petty cash on daily base.Now how to create petty cash and petty expenses in peachtree, follow the following steps.
Go to Maintain and click on chart of Accounts to create petty expenses and petty cashs, you can also watch the video attached here with.
In Account ID and description Write fuel expense, select the Account Type “Expense“,similarly create all other expenses and give the Account type as expense.
For Petty cash Account creation, in Account ID and description write peitty Cash then give the Account type “Cash”. Account type is very important,if you give wrong Account type, that will completely give wrong result.
Now there must be some Amount in cash with the cashier. for this purpose we will make a fund transfer transaction from the task menu.
Go to task menu and click on “General Journal Entry”. the Entry will be.
Petties Cash Debit and the Bank Account from whom we want to transfer money into petty cash will be credited According to GAAP’s rule.
How to pass Petty expense entry in peachtree Accounting software. Go to task Menu and click on General Journal Entry.
Stationary Expense Debit and Pety cash Account Credit. we have transfer some fund to our petty cashs Account,therefore we can make the expenses from petty cash Account.
Also watch the video