How will you record these transactions in the analytical petty cash book which is maintained with a weekly cash float (imprest) of Rs. 500?
Understand the Problem
The image shows a partially filled analytical petty cash book and asks to determine how to record the transactions in the book which is maintained with a weekly cash float of Rs. 500.
Answer
Record each transaction in the petty cash book, allocating amounts to relevant expense columns (postage, labor, transport, cartage).
To record the transactions, create an analytical petty cash book with columns for date, particulars, total amount, postage, casual labour, taxi/bus fare, and cartage. Enter each transaction with the date, description, and amount. Allocate the amount to the relevant expense column. At the end of the period, total each expense column to show total expenditure.
Answer for screen readers
To record the transactions, create an analytical petty cash book with columns for date, particulars, total amount, postage, casual labour, taxi/bus fare, and cartage. Enter each transaction with the date, description, and amount. Allocate the amount to the relevant expense column. At the end of the period, total each expense column to show total expenditure.
More Information
The imprest system involves setting a fixed amount of cash for petty expenses. When the fund is reimbursed to its original amount, this provides control and makes tracking expenses easier.
Tips
A common mistake is not allocating the expenses to the correct analytical column. Always double-check the nature of the expense before recording it.
Sources
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