Accounting for petty cash under IFRS...

Question

Is there any special requirement in accounting for petty cash?

Answer 1

There is no special treatment under IFRS. Here are the general entries in a petty cash imprest system:

When you first get the money for the petty cash float
DR Petty cash a/c
CR Bank a/c

When there is a petty cash expense
DR Relevant expense a/c
CR Petty cash a/c

When you reimburse the money ( when the petty cash float is going below a set limit )

DR petty cash a/c
CR Bank a/c