doubt in accounts

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Mahesh

Mahesh (Querist)
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17 September 2009 balance of the petty cash book is an asset or an income

Mani VGS

Mani VGS (Expert)
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17 September 2009 It is an Asset. Petty cash book is a part of main cash book which mainly deals with petty expenses. Therefore, balance amount
left in petty cash book is an asset for the enterprise. It is nothing but balance in cash account.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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17 September 2009 How can you say that unused cash is our income, perrt cash is surely is an assets.

If unused cash would be our income, the bank not grant any loan and shpw huge profit(if unused cash will be termed as income).

Taranjit Singh

Taranjit Singh (Expert)
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17 September 2009 Petty cash is the amount of money you have on hand. Most companies have a box containing small amounts of cash for small purchases like stamps, cream for coffee, and courier charges. The amount of money physically in the box should equal the balance of the petty cash account on the balance sheet.
So treated in current Assets.