Question

Balance in a petty cash book is

• A. An expense
• B. A profit
• C. An asset
• D. None of the above

Answer 1

Answer:

C. An asset

Petty cash Book is just like a cash book , its just that this book maintains petty cash expenses separately as against the normal cash book . Therefore, balance of petty cash book is an asset & an not income. Its used for paying out petty expenses.