Deck 13: The Petty Cash Book

Question 1

Which of the following statements is true?

A) The petty cash book
B) Is not a book of prime entry
C) Records cheques paid and received
D) Records cash received and paid. E. Is written up from the bank paying-in book and cheque stubbs

Answer 1

Records cheques paid and received

Question 2

The imprest system float is £200. During the month the secretary purchases tea for £8, pays travel expenses of £35, purchases sundry stationery worth £18, purchases milk for £28, purchases stamps for £36, pays for the laundry of the kitchen tea towels of £58 and pays for biscuits £12
How much reimbursement will be required at the end of the month?

A) £200
B) £195
C) £5
D) None of the above

Answer 2

£195

Question 3

An entity's petty cash expenditure in the month is £135. If management decide that the closing balance in the petty cash should be reduced from £200 to £150, what would the double entry be to reimburse the petty cash book at the end of the month (assume an imprest system)?

A) Dr. Petty cash account £50
B) Cr. Bank account £50
C) Dr. Bank account £50
D) Cr. Petty cash account £50
E) Dr. Bank account £85
F) Cr. Petty cash account £85
G) Dr. Petty cash account £85
H) Cr. Bank account £85

Answer 3

Dr. Petty cash account £85

Question 4

The imprest system float is £200. During the month the secretary purchases tea for £8, pays travel expenses of £35, purchases sundry stationery worth £18, purchases milk for £28, purchases stamps for £36, pays for the laundry of the kitchen tea towels of £58 and pays for biscuits £12. The float is to be increased to £250 at the end of the month
How much reimbursement will be required at the end of the month?

A) £250
B) £245
C) £195
D) £55

Question 5

The imprest system float is £350. During the month the secretary purchases tea for £18, pays travel expenses of £55, purchases sundry stationery worth £38, purchases milk for £18, purchases stamps for £56, pays for the laundry of the kitchen tea towels of £88 and pays for biscuits £8. The float is to be reduced to £280 at the end of the month.
How much reimbursement will be required at the end of the month?

A) £351
B) £281
C) £211
D) None of the above

Question 6

An entity has £50.00 in its petty cash float. The cashier takes £30.00 out of the shop till, purchases flowers at £15.00, tea for £2.00, biscuits for £4.00, toilet roll for £3.00. What should be balance in petty cash be at the end of the day?

A) £56
B) £50
C) £6
D) None of the above