Petty Cash Log
Track petty cash in and out with a live running balance and automatic closing balance.
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Scope and reference context
Keep original invoices, receipts and approvals. A worksheet records your assumptions and entries; it does not verify delivery, collect payment, enforce a contract or synchronize inventory.
Primary reading context, not an endorsement or evidence that the linked organization reviewed this tool. No independent professional sign-off is claimed.
About the Petty Cash Log
Petty cash is small money that causes big headaches when it is not tracked. A tin of bills for coffee runs, postage, and parking drifts out of balance fast, and at reconciliation time nobody can say where $40 went. A running log fixes this by recording every deposit and withdrawal against a starting float, so the balance in the drawer should always match the balance on the sheet.
This log starts from an opening balance and records each transaction with a date, description, and either a cash-in or cash-out amount. It carries a running balance down the rows so you can see the drawer's value after every entry, and it computes total cash in, total cash out, and a closing balance. When the closing figure matches a physical count of the tin, your petty cash is reconciled.
How the Petty Cash Log works
The running balance starts at the opening balance and, for each row, adds the cash in and subtracts the cash out. So the balance shown on any line is the drawer total immediately after that transaction. A negative running balance appears in red, which signals an impossible state — you cannot pay out more than the drawer holds — and usually means a missed deposit or a data-entry error.
The closing balance uses the summary formula: opening balance plus total cash in minus total cash out. Totals for the in and out columns are simple sums of each column. Reconciliation is the act of comparing this calculated closing balance to the actual cash counted in the tin; any difference is a discrepancy to investigate before replenishing the float back to its standard level.
Worked example
Starting from an opening balance of $200, the log records five entries. Office coffee and supplies takes out $24.50, leaving $175.50. Postage takes $11.20, leaving $164.30. A reimbursement deposit adds $50.00, bringing the drawer to $214.30. Parking takes $18.00, dropping it to $196.30. Cleaning supplies takes $32.75, ending at $163.55.
The column totals come to $50.00 cash in and $86.45 cash out. Applying the closing formula, $200 plus $50 minus $86.45 equals $163.55, which matches the final running balance on the last row. If a physical count of the tin also shows $163.55, the petty cash is reconciled and you can top it back up to $200 by drawing $36.45 from the bank.
Tips & common mistakes
- Log every transaction the moment it happens and staple the receipt to a slip; undocumented cash-outs are the number-one cause of an unreconcilable drawer.
- Watch for a red (negative) running balance; it means the sheet shows you paying out more than the drawer held, so a deposit is missing or a figure is mistyped.
- Reconcile by counting the actual cash and comparing it to the closing balance; the two should match to the cent before you replenish.
- Top the float back to its standard level (here $200) by drawing exactly the total cash out less any deposits, keeping the drawer at a predictable starting point each period.
- Record deposits into the drawer as cash in, not as a reduction of cash out, so both column totals stay meaningful.
Petty Cash Log: frequently asked questions
How is the closing balance calculated?
Closing balance equals opening balance plus total cash in minus total cash out. From $200 opening, with $50 in and $86.45 out, the closing balance is $163.55, which also matches the running balance on the final row.
What does the running balance column show?
It shows the drawer's value immediately after each transaction. The tool starts at the opening balance and, row by row, adds cash in and subtracts cash out, so you can trace exactly when the balance changed and by how much.
Why is a running balance showing in red?
Red means the balance went negative, which is physically impossible for a cash drawer. It almost always indicates a missing deposit entry or a cash-out amount typed larger than it should be. Correct the offending row to clear it.
How do I reconcile the petty cash?
Count the physical cash and compare it to the calculated closing balance. If both read $163.55, you are reconciled. Any gap is a discrepancy to trace through receipts before you replenish the float.
How do I replenish the fund after the period?
Bring the drawer back to its standard opening level. With a $200 float ending at $163.55, you would deposit $36.45 of cash back in, which equals total cash out ($86.45) minus deposits already made ($50). Then start the next period fresh.