The following transaction took place during the week ending 7th May 2011. How will you record them in the analytical petty cash book which is maintained with a weekly cash float (i... The following transaction took place during the week ending 7th May 2011. How will you record them in the analytical petty cash book which is maintained with a weekly cash float (imprest) of Rs. 500?
Understand the Problem
The question provides a list of transactions that occurred during the week ending May 7th, 2011, and asks how they should be recorded in an analytical petty cash book, which is maintained with a weekly cash float of Rs. 500. This is an accounting question and requires us to prepare petty cash book entries.
Answer
Record each expense (Postage, Casual labour, Taxi hire charges, Bus fare, and Cartage) with its date and amount in the petty cash book. Reimburse the petty cashier to bring the cash back to Rs. 500.
To record the transactions in the analytical petty cash book, you will list each expense (Postage, Casual labour, Taxi hire charges, Bus fare, and Cartage) with its corresponding date and amount. The total of these expenses will be deducted from the imprest amount of Rs. 500, and the petty cashier will be reimbursed to bring the petty cash back to Rs. 500.
Answer for screen readers
To record the transactions in the analytical petty cash book, you will list each expense (Postage, Casual labour, Taxi hire charges, Bus fare, and Cartage) with its corresponding date and amount. The total of these expenses will be deducted from the imprest amount of Rs. 500, and the petty cashier will be reimbursed to bring the petty cash back to Rs. 500.
More Information
The analytical petty cash book helps to categorize expenses, making it easier to analyze spending patterns. The imprest system ensures that the petty cash balance is always a fixed amount.
Tips
A common mistake is not balancing the petty cash book correctly or forgetting to replenish the fund to the original imprest amount.
Sources
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