petty cash accounting - pvt. ltd. company?

Question

Ours is a small pvt. ltd. co. having turnover of less than a crore.
Every month we give Advance Rs.1000/- to petty cashier for petty cash expenses to be incurred during the month.
At the end of the month suppose he shows a total spend of Rs.950/- towards petty cash expenses, then can we post the entire Rs.950/- as Miscellaneous expenses or should we show the break-up of Rs.950/- into various expenses-head?
Classification of the petty expenses is not practicable because many times there are expenses less than 10/- per day for tea etc.
So, we post the entire petty cash expended in that month under " Miscellaneous expenses"
Please guide me on this issue...........

Answer 1

It all depends on how material to the rest of the accounts Rs 1000 is. In 12 mths you'd have accumulated Rs 12,000 in miscellaneous expenses. Is this too big compared to other account totals? If it's mere pittance, then I'd leave it like that. Or if every mth there are a couple of larger items, for e.g. office maintenance expenses, I'd take out just this large amt to its own category and leave all the rest in miscellaneous. It's all relative. There are no hard and fast rules. The only thing to worry about is not to have too large a misc balance in case the tax auth queries it and then you'll have to waste time breaking down the balance for them.