How to make petty cash in Tally.erp 9

How to make petty cash Tally.erp 9

In every business organization of whichever size, there is a large number of small payment to be made such as for payment of wages to the installation of machine, postage stationary bus fare cartage, Diesel for generator etc has to be made.These payments are generally spontaneous in nature.If all these payments are made by the main or head cashier and he recorded in the main cash book, the cash book the cashier will be exhaust with the heavy work.To stop this it is usually to maintain petty cash book and the person who do the entries in the book is known as the petty cashier.It is a systematic way of recording small payments of daily expenses.It is generally maintained by the petty cashier of the company.It is a small amount of cash on hand to meet daily small expenses of the business.

Video about petty cash in Tally

Petty cash under which account in tally

Petty cash comes under Cash account in tally

Implementation of Petty cash Tally

Suppose An Ltd withdrew petty cash from bank Rs 10,000

under such condition, new account with the name Petty cash is to opened

  • Go to Gateway of Tally > Accounting info > Create Ledger > Petty cash
  • Petty cash to be made under Cash in hand account
petty cash

petty cash

  • Now pass the journal entry
  • Go accounting voucher > F4 key in contra entry Debit petty cash a/c and credit bank account amount to be entered is Rs 10,000.

petty cash1

  • Now go to accounting info  > create new voucher
  • Type name Petty cash
  • under a type of voucher select payment
  • Under name of class type: Petty Cash
  • petty cash 2
  • New screen appears
  • select under excluding this group: cash and bank account
  • select under ledger name :
  • Specify ledger with this class is created (cash or bank) : select Petty cash A/c
  • petty
  • now go to payment voucher and made the payment of expense
  • Press F5 select class petty cash books
  • Now select name petty cash
  • select the ledger stationary expense  and made payment of Rs 1500
  • petty cash 4


Example of Petty cash in tally

Mr. Mohan withdraws 20000 from the bank for petty cash a/c.

1 April 2015

He paid Rs 400 as wages

1 April 2015

he paid Rs 500 as a stationary expense

1 April 2015

He paid Rs 700 for repair of furniture A/c

He paid conveyance to Bahadur Singh Rs 200.

Note to me all this first of all we have to make ledger of all the above expenses

See also: what is petty cash book


Add a Comment
  1. Enter are going in payment lager instead of Petty cash
    Plz suggest and solve my problem.

    1. make a class petty cash under payment

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