A) Generally Amount paid by the company to the petty cashier for the petty cash expenditure for a given period.And such cash is utilised by the petty cashier for incurring different expenditure on different times during that period.the company does not book such petty cash payment exceeding 20000 to petty cashier as an expense.which can be booked by a company as follows:

1) Petty Cash A/c ..............Dr Rs. 21000/-

To, Cash A/c Rs. 21000/-

(On a single day)

2) Expenses A/c..................Dr. Rs. 7000/-

Expenses A/c .................Dr. Rs. 7000/-

Expenses A/c .................Dr Rs. 7000/-

To, Petty Cash A/c Rs. 21000/-

(on different dates)

In the above case it has clarified that the expenditure incurred to a single person are not erxceeding more than 20000 in a single day inspite of the petty cash payment to the cashier is exceeding 20000. but where the expenditure incurred by the petty cashier is exceeding 20000 to a single person in a single day then it will come under the purview of Sec. 40A (3).

B) In the case of reimbursment of petty cash exp. to the petty cashier can be explained as follows:

1) Expenses A/c..................Dr. Rs. 7000/-

Expenses A/c .................Dr. Rs. 7000/-

Expenses A/c .................Dr Rs. 7000/-

To, Petty Cashier A/c Rs. 21000/-

(On different dates)

2) Petty Cashier A/c ......................Dr. Rs. 21000/-

To Cash A/c Rs. 21000/-

or,

2) Petty Cash A/c ........................Dr. 21000/-

To Cash A/c 21000/- &

Petty Cashier A/c.....................Dr. 21000/-

To Petty Cash A/c 21000/-

In the above case also the exp. is not incurred in a single day to a single person. only the exp. is reimbursed on a single day as a whole.It will not attract sec 4 A (3).but if one particular exp. incurred is exceeding 20000 then it will attract sec 40 A (3).Hope I've clarified your querry Binayak.