There are two primary types of entries in the petty cash book, which are a debit to record cash received. Recording of transactions ii petty cash book solutions this page contains the cbse accountancy class 11 chapter recording of transactions ii notes. Petty cash book assignment help team also explains that petty cash is never ever paid in check as this is very smaller amount. Oct 11, 2018 test your learning about cash book chapter by answering 6 short questions given below. Now lets learn to actually establish a good system where you will be able to use your log book. Petty cash book 2019, imprest system of petty cash advantages. Whether you decide to make a petty cash form or an actual book, the steps would be the same and the outcome would result in how well you manage the whole system. Under this system the petty cashier at first receives from the chief cashier a fixed sum of. At the end of a page, or expiry of the float, the page is torn out, stapled to vouchers and processed as a supplier invoice.
The first bank reconciliation exercise is a stepbystep tutorial see what to do at each step. Electronic funds transfer is a cash disbursement system that uses wire, telephone, or computers to transfer cash from one location to another. Cash book, pass book, bank reconciliation statement dr. What is the difference between an imprest and nonimprest. There are numerous small payments on account of expenses like stationery, cartage, coolie hire.
We suggest you try to answer each question yourself before clicking on the see answer button. Imprest system of petty cash is a system where the petty cashier is given a lump sum in cash often called a float keeping in view the possible needs of the business to meet its petty expenses for a stated period, e. The cash book and 8 the petty cash book ethaksalawa. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and. A business operates its petty cash by using the imprest system. Petty cash book is a formal summarization of petty cash expenditures, sorted by date. See if you know how journal entries are used when accounting for petty cash. Before the rise in the use of credit cards and charge cards, nearly all companies used petty cash accounts to allow employees responsible for purchasing small supplies to do so with minimal hassle. Petty cashier is a person, who maintains the petty cash book. In big business firms, all payments are made by cheques and all receipts are banked. You need to develop a set of policies or procedures dictating the handling of cash in your business to avoid problems such as theft and misappropriation. Petty cash book questions and answers pdf questions and answers from the community petty cash book questions and answers pdf. On march 1, 20x1, sherry jones established a petty cash fund.
Simple petty cash book class 11 accountancy cash book youtube. The cash book serves to record the receipts and payment of cash. Closing and worksheet problems and solutions accountancy. These credits can be for such transactions as payments for meals, flowers. What is the difference between an imprest and nonimprest petty cash account. Large businesses maintain petty cash book to reduce the burden of main cash book. Recording of transactions ii petty cash book solutions. A petty cashier makes a detailed analysis of petty payments and records under suitable heads, i. Download free printable worksheets accountancy pdf of cbse and kendriya vidyalaya schools as per latest syllabus in pdf, cbse class 11 accountancy worksheet subsidiary books i cash book practice worksheets for cbse students. Petty cash book explanation, format, example, ordinary.
Since cash account is a real account, this ruling is followed, i. Petty cash is a small amount of discretionary funds in the form of cash used for expenditures where it is not sensible to make any disbursement by cheque, because of the inconvenience and costs of writing, signing, and then cashing the cheque. How the imprest system of petty cash book works your business. Below is a very simple worked question and answer for the reader to enhance the understanding of imprest petty cash system. Importance of petty cash book imprest system answers. Cbse class 11 accountancy subsidiary books i cash book. How the imprest system of petty cash book works your. A petty cash is a cash book used to enter all small or petty expenses obtained. From the following information, show how his petty cash book will appear for the week ended on 16h october, 2016.
Acct 2301 final test study sheet flashcards quizlet. The book has one column to record receipt of cash which is only from the main cashier and other columns to record payments of various types. During an accounting period petty cash is used to pay cash expenses which are supported by petty cash vouchers. Petty cash book can be expressed as a formal summarization of the petty cash expenditures which refers to the daytoday normal. These questions quickly and efficiently test what you know about petty cash accounting. Which of the following items appearing on a bank reconciliation require a journal entry to bring the cash. You can find the questions answers solutions for the chapter 4 of cbse class 11 accountancy in this page. Lesson plan petty cash book jobs, employment freelancer. Under the system, the petty cash fund balance is always maintained at a fixed amount decided on when the fund is first established during an accounting period petty cash is used to pay cash expenses which are supported by petty cash vouchers. Principles of accounts answers to x questions teachers manual answers to x questions chapter 1 introduction to accounting none chapter 2 the accounting cycle 2. The daily transactions that use the petty cash are entered into this system which ensures that there is.
Adams petty cash 2part carbonless receipts book, 2. A separate column is allotted for each type of expenditure. Test your learning about cash book chapter by answering 6 short questions given below. Imprest petty cash question with answer college accounting. Please see teachers notes for explanations, additional activities, and tips and suggestions. The supplier is paid by drawing a cash cheque to reimburse the imprest system.
Petty cash book business petty cash book it is not necessary to carry out all the activities contained in this unit. Each t account contains the exact amount owing to a supplier a sales ledger b purchases ledger c general ledger d cash book 2. The petty cash book will be maintained by a separate cashier known as petty cashier in the accounting field. The check written to establish a petty cash fund in entered in the general journal by. What is vote book in public sector accounting answers. The following payments were made and vouched for during january. Under this petty cash book system, a lump sum amount of cash money is given to the petty cashier.
Petty cash book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc these are expenses which are incurred day after day. Bank reconciliation exercises and answers stepbystep tutorial exercise. Aug 26, 2009 the small purchases made in cash from the petty cash account. The system is very useful specially if an analytical petty cash book is used. Under the system, the petty cash fund balance is always maintained at a fixed amount decided on when the fund is first established. The most common way of accounting for petty cash expenditures is to use the imprest system. The petty cash book is a formal summarization of petty cash expenditures, sorted by date.
If you find difficulty in answering these questions, read cash book chapter thoroughly from explanation section of the website. Required c i state the amount of cash there should have been in the petty cash box. The petty cashier of john and james company paid cash for the following expenditures during march 2018. The importance of petty cash book imprest system is that it helps in basic bookkeeping. The cash book is a chronological record of the receipts and payments transactions for a business. Prepared by teachers of the best cbse schools in india. Petty cash book a petty cash book is shown on the next page.
How petty cash affects taxesfree to download and printanother crucial thing in holding and maintaining petty cash is the use of a petty cash log bookit is not used for the personal expenses of the employeescash count sheet this sample cash count sheet template allows you to easily record the amount of each denomination at the beginning and. Every time cash is required, there is no incentive to. May 24, 2008 explain how the imprest system of petty cash book works answer save. Apr 26, 2020 the petty cash book is a formal summarization of petty cash expenditures, sorted by date. The imprest petty cash system is a method of accounting for petty cash expenses. Following data extracted from the books of mahnoor malik. Petty cash book is maintained to record small expenses such as postage, stationery, telegram. Nov 23, 2006 a bought ledger account is created, called say petty cash. I then use a duplicate book to record petty cash expenditure. Use of petty cash is sufficiently widespread that vouchers for use in reimbursement are available at any office supply. In a nonimprest system, a fixed amount is issued every month. Because these items are very small, they are bundled together as petty cash items to save the bother and expense of listing every tiny item separately in the accounting system.
Note the analysis columns that enable the transaction to be recorded and analysed at the same time. Bank reconciliation exercises and answers free downloads. If not, it will pick up the account to be paid to automatically, if not, you can assign an account of your choice, to pay to. The petty cash book records the petty cash held on hand used in the day to day operations of the local government. Examples of petty cash controls include a limit such as 10% of the total fund on disbursements and monthly audits by someone other than the custodian. The balance of cash book is directly posted to the trial balance. In most cases, the petty cash book is an actual ledger book, rather than a computer record. The questions on this site are answered by people like you, that come to the site and want to hel. The trial balance a is a listing of all the general ledger account balances at a particular date. An imprest system of petty cash means that the general ledger account petty cash will remain dormant at a constant amount. Download petty cash book excel template petty cash book is a readytouse excel template to systematically record and manage your petty or small daily routine payments. Cash book three column cash book practice the following problem will help you to understand that how to maintain record in three column cash book. Abc enterprise has the following petty cash transaction for the month of january 2012.
The activities in a petty cash system and the related principles are. The purchase of a motor car on credit from toy automotive company for use in a firm should be. For this purpose, a petty cashier is appointed by the chief cashier. Petty cash book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc.
The difference between the total of the debit items and that of the total column on the credit represents the balance of the petty cash in hand. Cash book short questions and answers play accounting. The cash book is updated from original accounting source documents, and is therefore a book of prime entry and as such, can be classified as a special journal unlike other special journals such as the purchases journal or the sales journal, the cash ledger book records debit and credit entries. It is another cash book which is maintained, generally, in large business concerns to reduce the burden of main cash book, in which numerous transactions involving petty small amounts are recorded. In this book, separate columns are provided for usual head of expenditure. Most cash should be deposited right away in the bank, but a small amount can be kept on hand in a petty cash account earmarked for minor. Jan 1 cashier gives 150 as a float to petty cashier. Double entry book keeping cmoney measurement dperiodicity 4. Aug 12, 2017 simple petty cash book class 11 accountancy cash book by anjali is an online education portal that provides interactive study material for students of classes 6th to 12th. Petty cash book assignment help petty cash book homework help. The cash book is very widely use in every business, it is important to understand that how it is maintained in business concerns. How to match the transactions on the bank statement to the cash book. An imprest system of petty cash means that the general ledger account petty cash will remain dormant at a set amount.
For example, offices often keep spare cash to buy items like stamps or pencils. It brings to light common problems and the solutions to fix them. Thus, the book is part of a manual recordkeeping system. Latest petty cash assignment questions answered by industry experts. Under the imprest petty cash system, the petty cashier amount is fixed for a given time. The following petty cash transactions occurred during the month. Rohan maintains a petty cash book in the imprest system. Thus, the book in which small payments, which are not convenient to record in the main cash book, like postage, traveling expenses, purchase of stationery etc. Explain how the imprest system of petty cash book works answer save. Mar 05, 2007 oversight of petty cash is important because of the potential for abuse. Download petty cash book excel template exceldatapro. Petty cash book definition, types, format, examples. Below you will find all the cambridge international examinations igcse accounts 0452 past paper questions categorized into topics.
1249 109 1183 855 88 35 1641 188 1030 1178 1286 141 1019 1319 606 499 1428 1192 835 1151 831 390 1438 1266 1596 1 1461 999 1431 400 322 996 1292 942