- Joined
- Apr 28, 2010
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Hi
I would like to thank you in advance for replying to my below mentioned query:
Our company hands over some cash to an employee for meeting day to day petty expenses. Some times the petty cashier puts in cash from his own pocket and spends for the company. When the vouchers are posted, the petty cash account shows a negative balance.
My question is can we have a negative petty cash balance in Petty cash account or Main Cash Account ?
If yes, under what circumstances and how would it be reported in the balance sheet?
If not, what should be the entries to rectify it?
Please advice
Wajid Shaikh
I would like to thank you in advance for replying to my below mentioned query:
Our company hands over some cash to an employee for meeting day to day petty expenses. Some times the petty cashier puts in cash from his own pocket and spends for the company. When the vouchers are posted, the petty cash account shows a negative balance.
My question is can we have a negative petty cash balance in Petty cash account or Main Cash Account ?
If yes, under what circumstances and how would it be reported in the balance sheet?
If not, what should be the entries to rectify it?
Please advice
Wajid Shaikh