Petty cash entry doubt

On 1st on month 1000/- transfer entry from Cash to petty Cash . Create petty Cash ledger.

Contra entry

Petty Cash A/c Dr 1000/-
To Cash. A/c Cr 1000/-
( Transfer to petty Cash)

Expenses. A/c Dr. 500/-
To Petty Cash A/c Cr. 500/-
( expenses paid through petty Cash for the month)


On 31 St end of the month, Balance 500/- transfer to Cash A/c

Cash A/c Dr. 500/-
To Petty Cash. A/c Cr 500/-
( Transfer entry) .

If the cash withdrawn for office exp then

Office Expenses A/c Dr
To Cash

Petty cash seperate cash account

If payment is done from Cash in hand account then petty cash seperate entry is not required since petty cash can't be shown in the books

But  the query is reading  Petty Cash  A/c  , therefore Expense should be paid through  petty Cash only , and normally  day today  very  small  expenses are paid through petty Cash only , 

If 1000/- is petty cash balance?

Petty Cash is separate Cash Account, wherein the Cash is transfer from Main Cash , so we have to create Petty Cash ledger under Main Cash account and pay very small Day today expenses through petty Cash A/c , if any balance remain in petty Cash will again transfer to Main Cash or Carried forward to next month , at the end of the year we close petty Cash account and transfer balance to Main Cash account.

we Can not pay  Rs 5/- , Rs20 , Rs 70, Rs 130/-  or  any other small  expenses  through  Cheque , RTGS , NEFT , etc. therefore  , same are paid through  petty Cash only . 

After Paytm or Google pay, I think no need for imprest accounting. It's almost like cash in hand. But it has its advantages cause it can account for even 1/-

If the cash is maintained exclusively by cash section or accounts section then need not maintain seperate petty cash .

If the imprest is for other sections then monthly estimated amount can be transferred to other sections.

Actually, accounting wise couple of methods available. Pragmatic tally approaches is, I have adopted a method where the person who withdraws cash is linked to banks account if they purchase things online instead of putting them under sundry debtors or creditors. Cash is different and they have to name them under sundries because petty cash is not available in many erp