Financial accounting tests and answers business book mall. These small expenditures are usually paid using coins and currency notes rather than checks. These are expenses which are incurred day after day. There are two primary types of entries in the petty cash b. Jun 03, 2019 it has only one money column on debit and credit sides to record cash transactions, that is why it is called simple or single column cash book. Petty cash online practice tests 2019 petty cash online. Replenished petty cash fund using the following expenses. Exercise 86 petty cash fund accounting lo p2 palmona co. Given the high risk of petty cash theft, it is generally better not to create excessively large petty cash funds, even though smaller ones must be replenished more frequently.
Take a quick multiple choice questions mcqs test about cash book. It is another cash book which is maintained, generally, in large business. The cash book is very widely use in every business, it is important to understand that how it is maintained in business concerns. Petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel. Borrowing money from colleagues at work, petty cash, or from neighbours is a fast way of making yourself unpopular. Free online cash book etc practice and preparation tests. A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure. The accounting system has a provision to create a separate fund to meet day to day small expenses which is known as petty cash fund. An amount of money issued to a department used on a revolving basis to pay for expenses of a nominal amount when other procurement methods are not practicable or when cash is required. The petty cash voucher details are then entered in the petty cash book and the voucher filed away in numerical order so that it may be easily located if necessary. Quickbooks practice test 100 questions flashcards quizlet. Petty cash book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc. Loretti decided to keep his petty cash book on the imprest system.
Petty cash is the easily accessible small amount of money kept by a business organizations for expenditures on small items. Coupon 7 days ago besides maintaining a main or general cash book, many companies also maintain a small cash book known as petty cash book to record small day to day expenditures of the business 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. We suggest you try to answer each question yourself before clicking on the see answer button. Petty cash book format example definition explanation. Cash book, pass book, bank reconciliation statement dr. This form of cash book has only one amount column on each of the debit and credit sides of the cash book. Try the multiple choice questions below to test your knowledge of this chapter. Disburse cash for expenditures during the month, three employees john, kathy, and amanda made small businessrelated purchases. Cash and internal control since cash is the most liquid of all assets, a business cannot survive and prosper if it does not have adequate control over its cash. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Bank reconciliation exercises and answers petty cash log after this exercise rose decides she must check her bank account online more often, every day even, to make sure the cashbook is as close to agreement as possible with what it says at the bank so that there are less adjustments to make at the end of the month. She keeps the cash book herself but her accountant writes up her ledger each month. This 2part carbonless book can be used to document the receipt of petty cash.
This is based on our petty cash log form, but there is no reason not to use the cashbook layout. Notes on petty cash book other other cash and banking. The cash book is 100% free for you to download and use forever, and it is fully customizable so you can change anything in it. Petty cash 2 bank reconciliation 3 accounts receivable 4 promissory notes 5 inventory methods. Note the analysis columns that enable the transaction to be recorded and analysed at the same time. There are two primary types of entries in the petty cash book, which are a debit to record cash received by the petty cash clerk usually in a single block of cash at infrequent intervals, and a large number of credits to reflect cash withdrawals from the petty cash fund. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
Here we discuss the format of petty cash book, types of petty cash systems. Recording of transactions ii petty cash book solutions. Hence, the petty cash book is one in which all small items of expenses are recorded in a systematic manner made through petty cash fund. In accounting, cash is the main account when dealing with the inflow and outflow of money in a business. Notes, exercises, videos, tests and things to remember on petty cash book. Petty cash book syllabus aim is to explain the use of, and process, accounting data in the petty cash book and then post in the correct ledgers using the imprest system. An amount of money issued to a department used on a revolving basis to pay for expenses of a nominal amount when other procurement met. Yet, transferring data from a cash book can cause lots of problems when we are processing bookkeeping transactions. For example, rose could start a cashbook for the cash box at the back of her main cashbook just like she started the visa cashbook half way through the main cashbook preprinted book. Some firms will have lots of transactions which involve relatively small amounts of money e. Books of original entry revision notes igcse accounts. Cash book fillintheblank quiz accounting for management. Test your knowledge of double entry bookkeeping with our books of prime entry quiz. For this purpose, a petty cashier is appointed by the chief cashier.
Imprest petty cash question with answer college accounting. How process transactions in the petty cash book for more go to to donate. Books of prime entry are used in bookkeeping to record and summarize details of accounting source documents. Part 3 books of original entry notes video tutorials you tube channel click here. The strong spiral binding allows pages to lay flat while writing, and the white, canary paper sequence provides a copy of all payments received. Notes on petty cash book and petty cash fund other other. In order to correctly enter transactions into the cash book it is first necessary to be able to identify whether it is a receipt or a payment transaction.
Practice questions on journal, cash book, depreciation etc. Sohara puts her cash receipts in a till and enters them into her threecolumn cash book each week. Once you have completed the test, click on submit answers for grading to get your results. These tools can be used to gauge your knowledge of what these funds can. The following is an activity to test you on the words for. Simple petty cash book class 11 accountancy cash book by anjali is an online education portal that provides interactive study material for students of classes 6th to 12th. Petty cash 328408 practice tests 2019, petty cash technical practice questions, petty cash tutorials practice questions and explanations. Also included as a part of cash are the balances kept at banking and financial institutions. Cma aama exam practice finances procedures quizlet. Financial accounting practice sets with answers 2820. Recording of transactions ii petty cash book solutions this page contains the cbse accountancy class 11 chapter recording of transactions ii notes. Uses of petty cash book its a cash book used to enter daily petty expenses like cost of stationery, postage and xerox copy and so on. This is not a buck here or a buck there in the petty cash till.
Petty cash is a unique account because it is often immaterial in amount. A level accounts module 1 cashbooks and petty cashbooks the student room. Start studying cma aama exam practice finances procedures. Accounting and procedures for petty cash accounting guide. This excel cash book is suitable for any small business that wants an easy bookkeeping method a simple way to track your income and expenses. So, petty cash book is the cash book that records the petty expenses. Besides maintaining a main or general cash book, many companies also maintain a small cash book known as petty cash book to record small day to day expenditures of the business.
Petty cash book explanation, format, example, ordinary and imprest. On april 1, 2017, hassan sajjad store cash book showed debit balances of cash rs. This information really helps me for the challenging test im about set in the next hours, so thanks thanks very much for this vital information that keeps me well in. 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. It is another cash book which is maintained, generally, in large business concerns to reduce the burden of main cash book, in which numerous transactions involving petty small amounts are recorded. Petty cash book definition the petty cash book is defined as relatively small amount of cash kept at hand for making quick payments for miscellaneous small expenses in the business concern. By recording details of specific types of transaction such as credit sales or credit purchases in one book or journal, a summary posting can be made to. Check your understanding of a petty cash fund in this worksheet and quiz. Petty cash book making the best use of these units at the beginning of the class, make sure that students understand what they are doing and why. Take our basic bank reconciliation test to check out your knowledge of bank reconciliations used in double entry bookkeeping.
These items are usually paid for out of the petty cash. Petty cash book all petty expenses are paid through petty cash fund and their records are made in a separate book, which is known as petty cash book. These balances include savings and checking accounts. Petty cash book is a formal summarization of petty cash expenditures, sorted by date. Mcq for accountinghelp you to have score in admission test. Cash is the asset that has the greatest chance of going missing and this is why we must ensure that we have strong internal controls build around the cash. Cash book short questions and answers play accounting. Nov 23, 2018 take a quick multiple choice questions mcqs test about cash book. Notes on petty cash book grade 10 accountancy petty cash. Notes on petty cash book and petty cash fund other.
Thus, the book is part of a manual recordkeeping system. However, there are many times that businesses deal with such small amounts that. As the petty cashier has to account for his expenses, before he can draw further sums, the petty cash book remains up to date. These questions quickly and efficiently test what you know about petty cash accounting. Cash book three column cash book practice the following problem will help you to understand that how to maintain record in three column cash book. Bank reconciliation exercises and answers free downloads. Start studying quickbooks practice test 100 questions.
Practice questions for accounting page 50 admission global. More than 500 questions of accounting on 53 pages with answers. In this video, i will teach you about petty cash book. How to prepare a petty cash book by sir ard for more updates follow me on.
Vicki, the petty cash custodian, reimbursed the employees for the expenses incurred and obtained petty cash vouchers and purchase receipts from the employees. Test your learning about cash book chapter by answering 6 short questions given below. Decide upon the size of the petty cash fund at each location. Just click the start quiz button and start cash book mcqs quiz. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it.
On december 31, the office manager gives instructions to increase the petty cash fund by php 100. If you find difficulty in answering these questions, read cash book chapter thoroughly from explanation section of the website. You can find the questionsanswerssolutions for the chapter 4 of cbse class 11 accountancy in this page. If you are unable to solve these fillintheblank questions, read cash book chapter from. Cash book receipt or payment test your knowledge of double entry bookkeeping with our cash book receipt or payment quiz.
The petty cash book is for dealing with small items of money. She offers a cash discount of 3% to her debtors for payment within 15 days. The following petty cash transactions occurred during the month. We are doing the exercise on page 12 to help you to remember key words. Petty cash means the small amount that is allocated for the purpose of paying the small expenses which the company occurs in its day to day operations where it is unreasonable to issue the check and for managing the same custodians are appointed by the company. Notes, exercises, videos, tests and things to remember on petty cash book and petty cash fund.
University policy the purpose of a petty cash fund is to provide cash to business units sufficient to cover minor expenditures. The use of petty cash funds should be limited to reimbursement of staff members and visitors for small expenses, generally not to exceed. Petty cash book a petty cash book is shown on the next page. Accounting for management explanations, exercises, problems and calculators. The persson who maintains a petty cash book is known as. Petty cash book is a type of cash book, which use to record small amount of receipts and payment. Oct 24, 2017 in this video, i will teach you about petty cash book. Rose only discovered this after checking the deposit to the petty cash log sheet against the entry in the cash book. Petty cash meaning, examples accounting for petty cash.
Simple petty cash book class 11 accountancy cash book. Books of prime entry quiz double entry bookkeeping. Mar, 2018 the petty cash book is a formal summarization of petty cash expenditures, sorted by date. On march 1, 20x1, sherry jones established a petty cash fund. Petty cash exercises answers expense accounting scribd. As the petty cashier cannot draw as and when he likes, it prevents unnecessary accumulation of cash in his hand thus the chances of defalcation of cash are minimised. Cash is the asset that has the greatest chance of going missing and this is why we must ensure that we have strong internal controls build around the cash process.
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