Petty cash book problems answers pdf

The transaction, which often causes confusion, is the receipt of money, from a debtor, via the petty cash book. Indicate how control is maintained over petty cash transactions. Thus, the book is part of a manual recordkeeping system. Petty cash is commonly associated with storefronttype businesses who deal with clients who may pay in cash. A separate column is allotted for each type of expenditure. Principles of accounts answers to x questions teacher s manual answers to x questions chapter 1 introduction to accounting none chapter 2 the accounting cycle 2. We suggest you try to answer each question yourself before clicking on the see answer button. Noncurrent receivable petty cash current assets trade receivables current assets building property and equipment cash. Revised cash book with bank reconciliation statement, this video will help you to understand the process of preparing revised or adjusted cash book. 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.

Balance of the cash in bank account on the company books as. If you find difficulty in answering these questions, read cash book chapter thoroughly from explanation section of the website. She keeps the cash book herself but her accountant writes up her ledger each month. The voucher would show the date, amount, recipient, purpose and general ledger account. The following payments were made and vouched for during january. Recording of transactions ii petty cash book solutions this page contains the cbse accountancy class 11 chapter recording of transactions ii notes. During the month of april following business was transacted. Petty cash exercises answers free download as pdf file.

Besides the abovementioned problem, the chief cashier of a larger business has to deal with numerous transactions of large amount daily. Petty cash book is the accounting book that is used for the purpose of recording the petty cash expenditure i. Petty cash book is a formal summarization of petty cash expenditures, sorted by date. Revisedadjusted cash book with bank reconciliation.

Also included as a part of cash are the balances kept at banking and financial institutions. 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 is maintained to record small expenses such as postage, stationery, telegram. Solution assets major classification construction in progress property and equipment cash advance to affiliated co. Petty cash book can be expressed as a formal summarization of the petty cash expenditures which refers to the daytoday normal. Cbse xi commerce accountancy part i recording of transactions ii. Recording of transactions ii petty cash book solutions. A petty cash book is a book of vouchers which are prepared each time a disbursement is made from petty cash. Cash on hand p 500,000 petty cash fund 10,000 bpi current account 1,000,000. Petty cash book definition, types, format, examples.

Displaying all worksheets related to petty cash book. 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 labor etc. Get all questions and answers of recording of transactions ii petty cash book of cbse class 11 commerce accountancy part i on topperlearning. See this link to watch accounting classes for class 11. A petty cash book gives management a record of all the little. Test your learning about cash book chapter by answering 6 short questions given below. Problem 1 demonstration answer book abbey bookkeeping service, inc. Chapter 4 short answer questions, exercises, and problems. Petty cash may also be used for small ad hoc costs that arise e. Sohara puts her cash receipts in a till and enters them into her threecolumn cash book each week. 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. Cash book short questions and answers play accounting. Petty cash, also known as imprest cash, is a fund established for making small payments that are impractical to pay by check. You can find the questions answers solutions for the chapter 4 of cbse class 11 accountancy in this page.

Petty cash exercises answers expense accounting scribd. Petty cash book a i and ii bi and iii cii and iii diii and iv 5. There are two primary types of entries in the petty cash b. Bank reconciliation exercises and answers free downloads. The petty cash book is a book of vouchers which are made each time an. 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 is a type of cash book, which use to record small amount of receipts and payment. A petty cash supply allows such business to more easily make change for large denominations of currency. Enter the following transactions in the petty cash. Centres should ensure that candidates understand how the transfer from the petty cash book to the general ledger accounts is undertaken. On april 1, 2017, hassan sajjad store cash book showed debit balances of cash rs. Theory questions on a petty cash book were also included in this question. Petty cash, cash on hand, regular checking account, payroll checking account, savings account, and moneymarket fund is shown as the cash balance at end of. Below you will find all the cambridge international examinations igcse accounts 0452 past paper questions categorized into topics.

Ts grewal solutions for class 11 accountancy chapter 9. Download as docx, pdf, txt or read online from scribd. The credit side consists of several analysis columns. A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure. Petty cash fund 10,000 cash and cash equivalents p2,910,000 answer. Cash book single column cash book or simple cash book in very simple method. What are the advantages of the petty cash book answers. Doc cash and cash equivalents sample problems shawnee. Petty cash meaning, examples accounting for petty cash. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Lcci international qualifications level 1 certificate in. 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. Petty cash book format example definition explanation.

Cash includes currency and coins, although most businesses do not keep much of this type of cash around. These balances include savings and checking accounts. The cash book is very widely use in every business, it is important to understand that how it is maintained in business concerns. Single column cash booksimple cash bookwith solved. 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, pass book, bank reconciliation statement dr. Queries asked on sunday and after 7 pm from monday to saturday will be answered after 12 pm the next working day. Petty cash book questions on this topic produce a very good response. 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. Enter the following transaction in single columme cash book 1. Rohan maintains a petty cash book in the imprest system. 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. These are expenses which are incurred day after day. The petty cash book is a formal summarization of petty cash expenditures, sorted by date.

Describe the operation of a petty cash fund and its advantages. These tools can be used to gauge your knowledge of what these funds can. It is another cash book which is maintained, generally, in large business. The establishment of a petty cash system begins by making out a check to cash, cashing it, and placing the cash in a petty cash box. Ts grewal solutions for class 11 accountancy chapter 9 special purpose books i cash book. Each t account contains the exact amount owing to a supplier a sales ledger b purchases ledger c general ledger d cash book 2. Examples include postage due, reimbursement to employees for small purchases of office supplies, and numerous similar items. Jan 1 cashier gives 150 as a float to petty cashier. The trial balance a is a listing of all the general ledger account balances at a particular date. The true bank balance shown in the balance sheet comes from a adjusted cash book b bank statement c petty cash book d cash flow statement answers 1. Petty cash book definition, types, format, examples imprest and. Indicates that answers may be found at the end of the unit. Rose only discovered this after checking the deposit to the petty cash log sheet against the entry in the cash book.

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