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
Assets:
Current Assets:
Cash in Bank $20,000
Petty Cash $ 300 <-- Petty Cash appears here
Accounts Receivable $ 5,000
Inventory $15,000
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Total Current Assets $40,300
Non-Current Assets:
... (details not shown)
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Total Non-Current Assets (Amount)
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Total Assets (Amount)
Liabilities and Equity:
... (details not shown)
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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.
