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Questions and Answers
What is the total amount of expenses recorded in the petty cash book?
What is the total amount of expenses recorded in the petty cash book?
Which transaction has the highest expense recorded?
Which transaction has the highest expense recorded?
What was the expenditure on refreshment for employees?
What was the expenditure on refreshment for employees?
Which of the following involves transportation costs?
Which of the following involves transportation costs?
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After all transactions, what is the cash balance remaining?
After all transactions, what is the cash balance remaining?
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Study Notes
Analytical Petty Cash Book Overview
- A Petty Cash Book is used to record small cash expenses incurred by a business.
- The imprest system sets a fixed amount for petty cash; in this case, ₹2,000.
Transactions Summary for January 2021
- January 1: Paid ₹50 for cartage.
- January 2: Incurred STD charges of ₹40; paid bus fare of ₹20.
- January 3: Spent ₹30 on postage.
- January 4: Refreshment for employees cost ₹80.
- January 6: Paid ₹30 for courier charges.
- January 8: Customer refreshments amounting to ₹50.
- January 10: Additional cartage of ₹35.
- January 15: Manager's taxi fare was ₹70.
- January 18: Spent ₹65 on stationery.
- January 20: Bus fare of ₹10 recorded.
- January 22: Fax charges incurred were ₹30.
- January 25: Telegram charges added up to ₹35.
- January 27: Postage stamps cost ₹200.
- January 29: Furniture repair expenses totaling ₹105.
- January 30: Laundry expenses of ₹115 noted.
- January 31: Miscellaneous expenses summed to ₹100.
Cash Balance Calculation
- The total expenses for January amount to ₹1,065.
- Initial imprest amount of ₹2,000 minus the total expenses equals a remaining balance of ₹935.
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Description
This quiz focuses on preparing an Analytical Petty Cash Book from given transactions. It provides an opportunity to apply accounting principles to manage petty cash effectively, specifically with an imprest system amount of ₹2,000.
