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प्रश्न
What is petty cash book? How it is prepared?
उत्तर
Petty Cash Book is used for recording payment of petty expenses, which are of smaller denominations like postage, stationery, conveyance, refreshment, etc.
Person who maintains petty cash book is known as petty cashier and these small expenses are termed as petty expenses.
It is prepared by two methods:
1. Ordinary system: In this case, a fixed sum of money is paid to petty cashier for the payment of petty expenses and after spending the whole amount, the account is submitted by the petty cashier to the main cashier.
2. Imprest system: In this case, a fixed sum of the money is given to the petty cashier in the beginning of a period and at the end of the period the amount spent by him is reimbursed, so that he has a fixed amount in the beginning of every new period.
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संबंधित प्रश्न
Briefly state how the cash book is both journal and a ledger
What is the purpose of contra entry?
What do you understand by Imprest amount in petty cash book?
What is cash book? Explain the types of cash book
What is contra entry? How can you deal this entry while preparing double column cash book?
What is petty cash book? Write the advantages of petty cash book?
Enter the following transactions in a simple cash book for December 2016:
| ₹ | ||
| 01 | Cash in hand | 12,000 |
| 05 | Cash received from Bhanu | 4,000 |
| 07 | Rent Paid | 2,000 |
| 10 | Purchased goods Murari for cash | 6,000 |
| 15 | Sold goods for cash | 9,000 |
| 18 | Purchase stationery | 300 |
| 22 | Cash paid to Rahul on account | 2,000 |
| 28 | Paid salary | 1,000 |
| 30 | Paid rent | 500 |
Prepare a double column cash book with the help of following information for December 2016:
| ₹ | ||
| 01 | Started business with cash | 1,20,000 |
| 03 | Cash paid into bank | 50,000 |
| 05 | Purchased goods from Sushmita | 20,000 |
| 06 | Sold goods to Dinker and received a cheque | 20,000 |
| 10 | Paid to Sushmita cash | 20,000 |
| 14 | Cheque received on December 06, 2010 deposited into bank | |
| 18 | Sold goods to Rani | 12,000 |
| 20 | Cartage paid in cash | 500 |
| 22 | Received cash from Rani | 12,000 |
| 27 | Commission received | 5,000 |
| 30 | Drew cash for personal use | 2,000 |
Enter the following transactions in double column cash book of M/s Ambica Traders for July 2017:
| ₹ | ||
| 01 | Commenced business with cash | 50,000 |
| 03 | Opened bank account with ICICI | 30,000 |
| 05 | Purchased goods for cash | 10,000 |
| 10 | Purchased office machine for cash | 5,000 |
| 15 | Sales goods on credit from Rohan and received cheque | 7,000 |
| 18 | Cash sales | 8,000 |
| 20 | Rohan's cheque deposited into bank | |
| 22 | Paid cartage by cheque | 500 |
| 25 | Cash withdrawn for personal use | 2,000 |
| 30 | Paid rent by cheque | 1,000 |
Prepare double column cash book from the following information for July 2017:
| ₹ | ||
| 01 | Cash in hand | 7,500 |
| Bank overdraft | 3,500 | |
| 03 | Paid wages | 200 |
| 05 | Cash sales | 7,000 |
| 10 | Cash deposited into bank | 4,000 |
| 15 | Goods purchased and paid by cheque | 2,000 |
| 20 | Paid rent | 500 |
| 25 | Drew from bank for personal use | 400 |
| 30 | Salary paid | 1,000 |
Enter the following transaction in a double column cash book of M/s.Mohit Traders for January 2017:
| ₹ | ||
| 01 | Cash in hand | 3,500 |
| Bank overdraft | 2,300 | |
| 03 | Goods purchased for cash | 1,200 |
| 05 | Paid wages | 200 |
| 10 | Cash sales | 8,000 |
| 15 | Deposited into bank | 6,000 |
| 22 | Sold goods for cheque which was deposited into bank same day | 2,000 |
| 25 | Paid rent by cheque | 1,200 |
| 28 | Drew from bank for personal use | 1,000 |
| 31 | Bought goods by cheque | 1,000 |
Prepare double column cash book from the following transactions for the year August 2017:
| ₹ | ||
| 01 | Cash in hand | 17,500 |
| Cash at bank | 5,000 | |
| 03 | Purchased goods for cash | 3,000 |
| 05 | Received cheque from Jasmeet | 10,000 |
| 08 | Sold goods for cash | 7,000 |
| 10 | Jasmeet's cheque deposited into bank | |
| 12 | Purchased goods and paid by cheque | 20,000 |
| 15 | Paid establishment expenses through bank | 1,000 |
| 18 | Cash sales | 7,000 |
| 20 | Deposited into bank | 10,000 |
| 24 | Paid trade expenses | 500 |
| 27 | Received commission by cheque | 6,000 |
| 29 | Paid Rent | 2,000 |
| 30 | Withdrew cash for personal use | 1,200 |
| 31 | Salary paid | 6,000 |
M/s Ruchi trader started their cash book with the following balances on July 2017: cash in hand ₹ 1,354 and balance in bank current account ₹ 7,560. He had the following transaction in the month of July 2017:
| ₹ | ||
| 03 | Cash sales | 2,300 |
| 05 | Purchased goods, paid by cheque | 6,000 |
| 08 | Cash sales | 10,000 |
| 12 | Paid trade expenses | 700 |
| 15 | Sales goods, received cheque (deposited same day) | 20,000 |
| 18 | Purchased motor car paid by cheque | 15,000 |
| 20 | Cheque received from Manisha (deposited same day) | 10,000 |
| 22 | Cash Sales | 7,000 |
| 25 | Manisha's cheque returned dishonoured | |
| 28 | Paid Rent | 2,000 |
| 29 | Paid telephone expenses by cheque | 500 |
| 31 | Cash withdrawn for personal use | 2,000 |
Prepare bank column cash book
Prepare petty cash book from the following transactions. The imprest amount is ₹ 2,000.
| January | ₹ | |
| 01 | Paid cartage | 50 |
| 02 | STD charges | 40 |
| 02 | Bus fare | 20 |
| 03 | Postage | 30 |
| 04 | Refreshment for employees | 80 |
| 06 | Courier charges | 30 |
| 08 | Refreshment of customer | 50 |
| 10 | Cartage | 35 |
| 15 | Taxi fare to manager | 70 |
| 18 | Stationery | 65 |
| 20 | Bus fare | 10 |
| 22 | Fax charges | 30 |
| 25 | Telegrams charges | 35 |
| 27 | Postage stamps | 200 |
| 29 | Repair on furniture | 105 |
| 30 | Laundry expenses | 115 |
| 31 | Miscellaneous expenses | 100 |
