Double entry primer page 45

Double Entry For Petty Cash Receipts

For each petty cash receipt transaction, it must be pitted against the Petty Cash account. For example, if a transaction is a receipt of staff loan repayment, the entry in the sheet DATA is:

DR: Petty Cash
CR: Staff Loan-Staff X.

Sometimes, one petty cash receipt may involve more than one account. For example:

DR: Petty Cash $55.00
	CR: Staff B Loan $(50.00)
	CR: Interest-Staff Loan $(5.00)

In this case, we need 2 rows to accommodate 2 credit entries. Then, split the Debit amount into 2 amounts to match the number of credit amounts, i.e.:

DR: Petty Cash $50.00
CR: Staff B Loan $(50.00)
DR: Petty Cash $5.00
CR: Interest-Staff Loan $(5.00)

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