Bookkeeping › Cash Book & Petty Cash
How do you post the totals of an analysed petty cash book with VAT?
AdvancedAnswer
Total each analysis column and the VAT column. Debit each expense account with its column total and the VAT account with the VAT column total; the total payments reduce the petty cash balance, which is restored by the reimbursement (Dr Petty Cash, Cr Bank). This posts many small items efficiently in a few entries.
Postage 40, Stationery 30, VAT 14: Dr Postage 40; Dr Stationery 30; Dr VAT 14.Real-world example The month's petty cash analysis columns post in total to postage, stationery, and VAT accounts.