The petty cash book is a formal summarization of petty cash expenditures, sorted by date. The cashbook reference column indicates cash was used. Indicates that answers may be found at the end of the unit. If you find difficulty in answering these questions, read cash book chapter thoroughly from explanation section of the. The accounting system has a provision to create a separate fund to meet day to day small expenses which is known as petty cash fund. Balance the petty cash book on 31 july 2017 and bring the balance down to. An amount of money issued to a department used on a revolving basis to pay for expenses of a nominal amount when other procurement methods are not practicable or when cash. During the month of april following business was transacted. Question 1 bank reconciliation the following information is available after the cash book of windhoek stores was compared with their bank statement at 28 february 2010. Petty cash means the small amount that is allocated for the purpose of paying the small expenses which the company occurs in its day to day operations where it is unreasonable to issue the check and for managing the same custodians are appointed by the company.
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. Bank reconciliation exercises and answers stepbystep tutorial exercise. We are doing the exercise on page 12 to help you to remember key words. Petty cash book explanation, format, example, ordinary and imprest. Petty cash book business petty cash book it is not necessary to carry out all the activities contained in this unit. Petty cash book questions and answers pdf questions and answers from the community petty cash book questions and answers pdf. If you find difficulty in answering these questions, read cash book chapter thoroughly from explanation section of the website. There are two primary types of entries in the petty cash b. Discount allowed and discount received worked example. Petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel, newspapers, cleaning, pins, and causal. Petty cash book definition, types, format, examples imprest and.
How to record liquidation of petty cash fund in a cash disbursement book. There is only one money column on both sides of a column cash book. We suggest you try to answer each question yourself before clicking on the see answer button. Also included as a part of cash are the balances kept at banking and financial institutions. Cash includes currency and coins, although most businesses do not keep much of this type of cash around. Exercise 86 petty cash fund accounting lo p2 palmona co. So, petty cash book is the cash book that records the petty expenses. Petty cash book a petty cash book is shown on the next page. Imprest petty cash question with answer college accounting. She offers a cash discount of 3% to her debtors for payment within 15 days. Rose only discovered this after checking the deposit to the petty cash log sheet against the entry in the cash book. Petty cash meaning, examples accounting for petty cash. Thus, every time petty cashier begins the next period with the same amount of float, under this system, petty cash fund is reimbursed for the petty expenses incurred is called impress systems of the petty cash book.
Oct 04, 2019 double column cash book or two column cash book consists of two columns of amount on each side to record cash and bank transactions. For this purpose, a petty cashier is appointed by the chief cashier. This book records all those expenses which are small. Each t account contains the exact amount owing to a supplier a sales ledger b purchases ledger c general ledger d cash book 2. On 1 april 2006 his cash book showed the following debit balances. Recording of transactions ii petty cash book solutions this page contains the cbse. Complete the petty cash book on page 7 for the month of july 2017 to record the transactions below. This 2part carbonless book can be used to document the receipt of petty cash. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Documenting transactions is the way a business documents business expenses for tax purposes. You can find the questions answers solutions for the chapter 4 of cbse class 11 accountancy in this page. Cash book, cash book get topics notes, online test, video lectures, doubts and solutions for cbse class 11 commerce on topperlearning. 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.
Worksheets are cash book title 10, petty cash log, cash book, petty cash voucher, paper references 430501 london examinations, three column cash books and discounts, petty cashchange fund reconciliation, hospitality accounting text. Thus, the book is part of a manual recordkeeping system. Simply click here to return to bookkeeping questions and answers. Besides maintaining a main or general cash book, many companies also maintain a small cash book known as petty cash book to record small day to day expenditures of the business. Note the analysis columns that enable the transaction to be recorded and analysed at the same time. Ensure to take note of every questions provided on this page. Rather than keeping cash acoount and bank account apart from each other, double column cash book enables us to keep these two accounts side by side. How process transactions in the petty cash book for more go to to donate. Petty cash book definition the petty cash book is defined as relatively small amount of cash kept at hand for making quick payments for miscellaneous small expenses in the business concern.
Petty cash book solved exercise english ahmed raza dharolia. Petty cash exercises answers expense accounting scribd. Oct 24, 2017 in this video, i will teach you about petty cash book. These are expenses which are incurred day after day. Rose looks in the petty cash box and finds the receipts in there. The cash book is very widely use in every business, it is important to understand that how it is maintained in business concerns. Below you will find all the cambridge international examinations igcse accounts 0452 past paper questions categorized into topics.
Displaying all worksheets related to petty cash book. How to match the transactions on the bank statement to the cash book. 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. Recording of transactions ii petty cash book solutions. The most important part of a petty cash system is the documentation of each transaction. Pdf principles of accounts answers to x questions teacher.
Waec gce book keeping questions 2020 objective and theory. How to measure the acquisition cost of property, plant and equipment. On april 1, 2017, hassan sajjad store cash book showed debit balances of cash rs. Uses of petty cash book its a cash book used to enter daily petty expenses like cost of stationery, postage and xerox copy and so on. Get petty cash page4 questions and answers, stepbystep textbook solutions, 100% plagiarism free answers and more on crazy for study. This cash book contains only one column for amount. Explain the meaning, need and importance of bank reconciliation. These tools can be used to gauge your knowledge of what these funds can. The questions on this site are answered by people like you, that come to the site and want to hel. The voucher would show the date, amount, recipient, purpose and. Take a quick multiple choice questions mcqs test about cash book.
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. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it. Answer the questions in the spaces provided there may be more space than you need. Worksheets are three column cash books and discounts, cash book, cash book title 10, double entry accounting workbook, what is accounting, personal financial workbook, proof of cash work 4 column, checking unit with lesson plans.
Petty cash book format example definition explanation. Cash book short questions and answers play accounting. The column cash book has two money columns on both sides one to record cash and other to record bank related transactions. Notes on systems of petty cash fund grade 10 accountancy. Please see teachers notes for explanations, additional activities, and tips and suggestions. Questions and answers of recording of transactions ii petty cash. It is another cash book which is maintained, generally, in large business. She keeps the cash book herself but her accountant writes up her ledger each month. These mcqs can help you to prepare for your exams, interviews and different tests. A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure.
As the petty cashier has to account for his expenses, before he can draw further sums, the petty cash book remains up to date. These balances include savings and checking accounts. Petty cash book is a formal book of recording petty expenses which are incurred in cash. Get all questions and answers of recording of transactions ii petty cash book of cbse class 11 commerce accountancy part i on topperlearning. So, candidates who are willing to work as petty cash manager, finance manager, accounts assistant, accounts officer, cashier and accountant, petty cash management officer and so on can avail the opportunity by looking into petty cash job interview questions and answers. Petty cash is an important method of running an effective organization. Mar, 2018 the petty cash book is a formal summarization of petty cash expenditures, sorted by date. Sohara puts her cash receipts in a till and enters them into her threecolumn cash book each week. The trial balance a is a listing of all the general ledger account balances at a particular date. 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 is a type of cash book, which use to record small amount of receipts and payment. Bank reconciliation exercises and answers free downloads. Petty cash exercises answers free download as pdf file. The petty cash book is a book of vouchers which are made each time an expense is made from petty cash money. The following petty cash transactions occurred during the month. Petty cash book is the accounting book that is used for the purpose of recording the petty cash expenditure i. Oct 11, 2018 test your learning about cash book chapter by answering 6 short questions given below. A petty cash book is a book of vouchers which are prepared each time a disbursement is made from petty cash.
How much should the petty cashier receive to reimburse the float at the end of december. As the petty cashier cannot draw as and when he likes, it prevents unnecessary accumulation of cash in his hand thus the chances of defalcation of cash are minimised. Cash book is a book of original entry, single column cash book problems and solutions are uploaded. Cash book, pass book, bank reconciliation statement dr. Cash book fillintheblank quiz accounting for management.
The petty cash voucher details are then entered in the petty cash book and the voucher filed away in numerical order so that it may be easily located if necessary. These are not real waec gce book keeping questions but likely repeated questions over the years to help candidate understand the nature of their examinations. Replenished petty cash fund using the following expenses. These small expenditures are usually paid using coins and currency notes rather than checks. Three column cash book problems and solutions accountancy. The office establishes the petty cash fund for paying petty expenses incurred daily. Petty cash book making the best use of these units at the beginning of the class, make sure that students understand what they are doing and why.
Petty cash is the easily accessible small amount of money kept by a business organizations for expenditures on small items. Just click the start quiz button and start cash book mcqs quiz. The credit side consists of several analysis columns. Managerial accounting 1b financial and managerial accounting chapter exercise 3 computation and analysis of trend percents l. The first bank reconciliation exercise is a stepbystep tutorial see what to do at each step. By keeping track of all petty cash transactions no matter how petty you have records to back up deductions for those small business expenses. Petty cash book is a formal summarization of petty cash expenditures, sorted by date. It brings to light common problems and the solutions to fix them. The cash book works as a book of original entry as well as a. The strong spiral binding allows pages to lay flat while writing, and the white, canary paper sequence provides a copy of all payments received. Principles of accounts answers to x questions teachers manual answers to x questions.
Test your learning about cash book chapter by answering 6 short questions given below. Complete cie 0452 accounting igcse past paper categorised questions by topic and combined pdf mark schemes for june and november. Petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel. In this video, i will teach you about petty cash book. You can find the questionsanswerssolutions for the chapter 4 of cbse class 11 accountancy in this page. Topperlearnings experts and students has answered all of recording of transactions ii petty cash book of cbse class 11 commerce accountancy part i questions in detail. Check your understanding of a petty cash fund in this worksheet and quiz. An amount of money issued to a department used on a revolving basis to pay for expenses of a nominal amount when other procurement methods are not practicable or when cash is required.