Petty cash book problems and solutions

The petty cthe petty cash fund ofash fund ofphpphp200 for walsh c200 for walsh company apompany appeared as follpeared as follows on decemows on december 31,ber 31. The disbursements from the petty cash funds should be supported by cash register tapes, invoices, or other documents. Prepare simple cash book from the following transactions of mr. Get all questions and answers of recording of transactions ii petty cash book of cbse class 11 commerce accountancy part i on topperlearning. Recording of repetitive expenses in cash book will burden the cashier. Examples include postage due, reimbursement to employees for small purchases of office supplies, and numerous similar items. Most people have a simple question, what do you actually include as headers in your. So is the case if you are looking for cbse class 11 commerce related topic. In this video iam explaining about a problem relating to petty cash book analytical petty cash book link for video on concept of petty cash book. Petty cash book free doubts and solutions topperlearning.

Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures. Petty cash book sample question jan 1 cashier gives 150 as a. Petty cash book is used for recording payment of petty expenses, which are. Accounting students can take help from video lectures, handouts, helping materials, assignments solution, online quizzes, gdb, past papers, books and solved problems. During the month of january following business was transacted. The cash book of ms universal trading company shows a cash book balance of rs. Prepare petty cash book on imprest system from the following particulars for minha shukat ltd. From the following information, show how his petty cash book would appear for the week ended 12th september, 2017. All questions and answers from the ncert book of class 11 commerce. This page contains the cbse accountancy class 11 chapter recording of transactions ii notes.

Cash book short questions and answers play accounting. Petty cash financial accounting simple book production. The sum of money so kept in hand generally termed as petty cash and book in which the petty cash expenditures are recorded is termed as petty cash book. Nu rf currency of your country b imprest system of petty cash book. Ts grewal solutions for class 11 accountancy chapter 9 special purpose books i cash book question 1. Two column cash book or double column cash book definition with explanation and format with examples are disscused here. Questions and answers of recording of transactions ii petty cash. Cash is an asset which is credited when there is cash. Record the following transactions in a suitable cash book and find out the cash and bank balances. Petty cash book and imprest system of petty cash book problem. 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. Cash ac is removed from the ledger and instead of it the single column cash book is kept to record cash transactions.

To solve these problems the chief cashier delegates responsibilities to. Petty cash book format example definition explanation. The receipts are recorded in the dr side and the payments are recorded in the cr side of the cash book. From the following information, prepare an analytical petty cash book. This type enables the businessman to know the information about the amount being spent on each head of petty expense. The fundamental difference between the main cash book and the petty cash book is that only petty expenses are recorded in the petty cash book. The petty cthe petty cash fund ofash fund ofphpphp200 for walsh c200 for walsh company apompany appeared as follpeared as follows on decemows on december 31,ber 31, 2011. A cash book acts like both a journal and a ledger for cash transactions.

Prepare an analytical petty cash book from the following information provided by mr. In large business houses, the cashier has to handle every day a large number of receipts and payments and if in addition to this he is further saddled with petty cash payments, his position. From following particulars relating to patna branch for the year ending 31st march, 2012, prepare accounts in the head office books. The specimen performa of a simple cash book is given as follows. Journalizing cash payments, recording petty cash, and. You can find the questionsanswers solutions for the chapter 4 of cbse class 11 accountancy in this page. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Learn about petty cash book topic of commerce in details explained by subject experts. The main advantages of imprest system of petty cash are as follows. Thus, the book is part of a manual recordkeeping system. If you find difficulty in answering these questions, read cash book chapter thoroughly from explanation section of the website. The following payments were made and vouched for during january. Nov 12, 2020 petty cash is the money a small business keeps on hand to pay for miscellaneous things.

Debit no entry to use the petty cash fund for specific expenses. Chapter 1 audit of cash and cash equivalents studocu. Petty cash book problem1 accountancy class 11 youtube. Ts grewal solutions for class 11 accountancy chapter 7 special purpose books 1 cash book is a concept that students should consider while preparing for their accountancy exam. These solutions for petty cash book are extremely popular among class 11. Recording of transactions ii simple cash book solutions. In an analytical petty cash book, there exists separate heads for different petty expenses, which makes recording much easier.

Petty cash book meaning, types, examples, and faqs vedantu. Top 16 problems on branch accounts your article library. Here is the video for triple column cash book with solution in simple way cash book tutorial, hope this will help you to get the subject knowledge at the e. Oct 15, 2020 the cashier who handles the petty expenses and petty cash book is known as petty cashier. In january, 2008 the firm received a bank statement for the month of december, 2007 showing a credit balance of rs. Petty cash book definition, types, format, examples imprest and.

Chd che chf ch1 ch2 ch3 ch4 ch5 ch6 ch7 ch8 ch9 ch10 ch ch11 ch12 problem. Petty cash book explanation, format, example, ordinary and imprest. Three column cash book problems and solutions accountancy. What amount should be reported as cash in bank on december 31, 2016. Also, pass a journal entry and post them to their respective ledger. Petty cash book is a formal summarization of petty cash expenditures, sorted by date.

Under imprest system, advance money is given to petty cashier. In addition, the money going into or out of the petty cash fund should be counted more carefully and. Recording of transactions in a petty cash book is easy. These small expenditures are usually paid using coins and currency notes rather than checks. Ts grewal solutions for class 11 accountancy chapter 9. Also see formula of gross margin ratio method with financial analysis, balance sheet and income statement analysis tutorials for free download on. Ncert solutions for class 11 commerce accountancy chapter 6. On january 1, 2017, humna faisals cash book showed debit balance of cash rs. Recording in a petty cash book does not require formal knowledge of accounting principles and techniques.

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. Learn how to set up and use petty cash in five steps plus see examples. In the same way no bank ac is opened in ledger for recording bank transactions, rather. Double column cash book explanation, format, example. Dk goel solutions class 11 chapter 11 books of original entry. Transportationin costs are included in the merchandise inventory account under a perpetual system. Journal ledger trial balance subsidiary books cash.

To record the journal entry, debit petty cash fund and credit cash account as shown below. Petty cash, also known as imprest cash, is a fund established for making small payments that are impractical to pay by check. The company expects to recover this amount from the insurance company. Recording of transactions ii petty cash book solutions eduxir.

Two column cash book double column cash book definition. But in double column cash book, we have two accounts, cash ac and the bank ac, so it is possible to have both a debit entry and a credit entry at the same time. It should also be kept in mind that petty cash book is not like the cash book. Petty cash book is used to record petty expenses like conveyance, carriage, postage, telegrams, traveling etc, that cannot. The petty cashier will record this amount on the debit side of the petty cash book while the chief cashier will record the same amount on the credit side of the main cash book. When a payment is to be made out of the petty cash fund, a petty cash voucher pcv is prepared by the petty cashier.

On december 31, the office manager gives instructions to increase the petty cash fund by php 100. What is the purpose of maintaining a petty cash book. We suggest you try to answer each question yourself before clicking on the see answer button. Petty cash book is maintained to record small expenses such as. Now a days some organizations are preparing the following journal to calculate cash receipts and. If youre looking for solutions to other theoretical questions or other book related numerical questions solutions, you can find them at.

In this paper, we outline a fivestep process that solves the problems associated with petty cash and allows centralised finance departments to gain control of the petty cash account. The petty cash book is the record of petty cash expenditures that are sorted by date. Cash ac and bank ac are two busiest accounts in ledger and they are removed from the ledger to reduce its volume and size. Ncert solutions for class 11 financial accounting recording. Proceeds from cash sales of p60,000 for december 18 were stolen. This quiz and worksheet gauge your knowledge of establishing and replenishing a petty cash fund, as well as what petty cash funds are used for.

Petty cash book and imprest system of petty cash book. Enter the following transactions in the petty cash book of sonia manzoor. Recording of transactions ii petty cash book solutions. Petty cash record and journal entries on july 1, a. The cashier who handles the petty expenses and petty cash book is known as petty cashier. It is increased when a sum of money is transferred to this fund for expenses to be incurred. Petty cash book download a template you can start using today. Here are a few solutions rendered in a simple and stepwise method. Fundamentals of financial accounting 5th edition edit edition. Petty cash book explanation, format, example, ordinary and. Supplement 5a recording petty cash transactionsmountain ai.

Prepare journal entries to record a establishment of the fund and b reimbursement of the fund at the end of the current period. This type of petty cash book is known as analytical petty cash book. Oct 11, 2018 test your learning about cash book chapter by answering 6 short questions given below. A good first step is to research the opinions of all those involved in the chain of accounting, distribution and use of petty cash. Click here to get an answer to your question balance in a petty cash book is. Petty cash book a statement of petty expenses paid by petty cashier for the fixed period of time to. There are two primary types of entries in the petty cash book, which are a debit to. A double column cash book or two column cash book is one which consists of two separate columns on the debit side as well as credit side for recording cash and discount. Decide upon the size of the petty cash fund at each location. Enter the following transactions in a single column cash book of mr.

Petty cash should be replenished on a periodic basis or when the cash is low. Cash receipts are recoded and or other side cash transfers are reported on the debit side of the account. Ncert solutions for class 11 commerce accountancy chapter 4. Hence, a separate book is created where petty expenses are recorded. For example, when we sell goods for cash, cash received will be recorded on the debit side of cash book and the goods sold will be posted on the credit side of sales account. Theory of accounts cash and cash equivalents inventories pas2 inventories mc ia vol 1 valix 2019 answer key assetprice asset price discussion ap receivables quizzer q related studylists intacct1 acctg. A petty cash book is just another kind of cash book that records petty cash transactions, i.

The petty cashier gets cash against the cheque from the bank and records the cheque in the receipts column of the petty cash book. Jan 1 cashier gives 150 as a float to petty cashier. A s the petty cashier has to produce to the chief cashier the petty cash book for inspection, it acts as a healthy check on the petty cashier. Analytical petty cash book problems and solutions part11 youtube. Let us learn about the petty cash book and the various systems of maintaining the said account. No entry is made for paid vouchers see proforma journal entry. Petty cash book definition, types, format, examples. Sri r maintains a columnar petty cash book on the imprest system. Bank reconciliation statement problems and solutions i brs i ak. Petty cash of p10,000 was included in the cash in bank balance. This page contains solutions to simple cash book numerical questions for the chapter 4 recording of transactions ii. It also saves time in posting each item of petty payments unnecessarily in the ledger.

Petty cash book explanation, format, example, ordinary. Make the appropriate entry in the petty cash record. It must be replenished on the balance sheet date so that the expenses represented by the petty cash vouchers can be. The cash receipts were recorded in the books, but no entry was made for the loss. Required c i state the amount of cash there should have been in the petty cash box. Ncert solution for class 11 accountancy chapter 4 recording. Recording of transactions ii petty cash book solutions this page contains the cbse accountancy class 11 chapter recording of transactions ii notes. From the following particulars write up the two column cash book cash and bank for habib ullah sadiq trading co. Triple column cash bookbank column cash bookdiscount.