Where Does Petty Cash Appear on the Balance Sheet?

Where Does Petty Cash Appear on the Balance Sheet

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Where Does Petty Cash Appear on the Balance Sheet

Petty cash appears on the balance sheet under the “Current Assets” section, usually as a separate line item. It is considered a highly liquid asset because it is cash or cash equivalents.

In the balance sheet, you may find it listed simply as “Petty Cash,” sometimes even under a broader category like “Cash and Cash Equivalents.”

Example of Where Does Petty Cash Appear on the Balance Sheet

Let’s consider a fictional small business, “LocalGrocer Inc.,” and look at how petty cash would appear on its balance sheet.

Assume LocalGrocer Inc. has the following assets as of December 31, 2023:

  • Cash in Bank: $20,000
  • Accounts Receivable: $5,000
  • Inventory: $15,000
  • Petty Cash: $300

Balance Sheet

The relevant portion of the balance sheet for LocalGrocer Inc. would look like this:

LocalGrocer Inc.
Balance Sheet
As of December 31, 2023


  Current Assets:
    Cash in Bank                  $20,000
    Petty Cash                    $   300  <-- Petty Cash appears here
    Accounts Receivable           $ 5,000
    Inventory                     $15,000
    Total Current Assets          $40,300

  Non-Current Assets:
    ... (details not shown)
    Total Non-Current Assets      (Amount)

Total Assets                      (Amount)

Liabilities and Equity:
  ... (details not shown)
Total Liabilities and Equity      (Amount)

In this example, Petty Cash appears under the “Current Assets” section of the balance sheet. It is listed separately with a balance of $300, which reflects the cash on hand designated for small, miscellaneous expenses. This clearly shows anyone reviewing the financial statement that the business has $300 in a petty cash fund as of December 31, 2023.

This level of detail helps provide transparency and a comprehensive view of the company’s liquidity and financial position.

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