I am a bookkeeping student and for one of my papers I have to write up a petty cash log. I just had a question regarding the change from transactions purchased with money from Petty cash. How would you record the change in the Petty cash log? For example if someone withdrew $5 from petty cash for milk, which only costs $3, and returned with a receipt of purchase and $2 change, how would this be recorded in the log?
Hi Rachel
Welcome to the forum. I can see from your profile that you are rather remote from us - we are a website based in the UK.
When cash advances are paid to staff to purchase items, the staff member should sign a petty cash voucher for the amount advanced. The appropriate milk receipt and any change must be returned within an agreed timescale, and a new voucher completed and signed for the actual cost, to replace the original voucher. Keep the original voucher attached to the new one, especially if vouchers are numbered (which they should be).
The petty cash book would then just reflect the amount paid for the milk - ie the $3.
Hope that helps
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
