Double entry primer page 46

Double Entry For Petty Cash Payments

For each petty cash payment transaction, it must be pitted against the Petty cash account. For example, if a transaction is a payment for medicine, the entry in the sheet DATA is :

DR: Medicine
CR: Petty Cash

Similarly, a petty cash payment may sometimes involve more than one account. For example:

DR: Stationery $50.00
DR: Medical $40.00
CR: Petty Cash $(90.00)

In this case, we need 2 rows to accommodate 2 debit entries. Then, split the one credit amount into 2 amounts to match the number of debit amounts, Le:

DR: Stationery $50.00
CR: Petty Cash $(50.00)
DR: Medical $40.00
CR: Petty Cash $(40.00)

This will take up 4 rows.

Double Entry For Bank Receipts

For each bank receipt transaction, it must be pitted against the bank account. For example, if a transaction is a receipt by Bank A for sale of wastage, the entry in the sheet DATA is :

DR: Bank A $20,000.00
CR: Sale of wastage $(20,000.00)

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

DR: Bank A $5,000.00
CR: Customer A $(4,500.00)
CR: Annual Dinner contribution $(500.00)

In this case we need 2 rows to accommodate 2 credit entries. So, split the 1 Debit amount into 2 amounts to follow the number of credit amounts:

DR: Bank A $4,500.00
CR: Customer А $(4,500.00)
DR: Bank A $500.00
CR: Annual Dinner contribution $(500.00)

In this case, 4 rows will be utilized.




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