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MT1 Ch18
MT1 Ch18
Students should know how the imprest system works and its advantages.
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It is also important for students to be able to draw up an analytical petty cash book correctly.
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The use of analysis columns in the petty cash book makes it easy to calculate the totals of the various
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expenses.
The final column is usually for ledger accounts. The total of this column is not posted to any account.
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Answers to MCQs and exercises
18.1 A 18.2 D 18.3 A 18.4 B 18.5 D
18.6
Petty Cash Book
Motor Postage & Cleaning Sundry Ledger Ledger
Receipts Date Details Total
expenses stationery expenses expenses folio accounts
$ 20X6 $ $ $ $ $ $
1,000 May 1 Balance b/f
" 1 Cleaning 36 36
" 3 Speedy Garage 24 24
" 4 Postage 55 55
" 5 Envelopes 17 17
" 6 Poison licence 18 18
" 8 Unique Garage 57 57
" 9 Corner Garage 64 64
" 11 Postage 58 58
" 12 F Lee 99 PL 121 99
" 13 H Ng 44 PL 168 44
" 15 Sweeping brush 23 23
" 16 Bends Garage 77 77
" 17 K Kin 65 65
" 19 Driving licences 11 11
" 21 C Hop 72 PL 15 72
" 25 Cleaning 68 68
" 27 Dog licence 12 12
" 28 Guard dog food 29 29
" 31 Corner Garage 54 54
883 287 195 127 59 215
883 " 31 Cash
" 31 Balance c/d 1,000
1,883 1,883
1,000 Jun 1 Balance b/d
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18.7X
(a–b) Petty Cash Book
School Staff
Ledger Ledger
Receipts Date Details Total bus travelling Postage Cleaning
folio accounts
expenses expenses
$ 20X4 $ $ $ $ $ $
300 Sep 1 Cash
" 2 Petrol 16 16
" 3 T Kan 23 23
" 3 Postage 12 12
" 4 D Tong 32 32
" 7 Cleaning 11 11
" 9 Petrol 21 21
" 12 K Wong 13 13
" 14 Petrol 23 23
" 15 L Bei 5 5
" 16 Cleaning 11 11
" 18 Petrol 22 22
" 20 Postage 12 12
" 22 Cleaning 11 11
" 24 H Woo 7 7
" 27 T Chen 13 PL 18 13
" 29 Postage 12 12
244 82 80 36 33 13
244 " 30 Cash
" 30 Balance c/d 300
544 544
300 Oct 1 Balance b/d
Postage
20X4 $
Sep 30 Petty cash 36
Cleaning
20X4 $
Sep 30 Petty cash 33
Purchases Ledger
T Chen (page 18)
20X4 $
Sep 27 Petty cash 13
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18.8
(a) Petty Cash Book
Travelling Miscellaneous
Receipts Date Details Total Postage Stationery Entertainment
expenses expenses
$ 20X5 $ $ $ $ $ $
315 Sep 1 Balance b/f
1,685 " 1 Cash
" 1 Postage stamps 84 84
" 3 Newspapers 15 15
" 6 Dinner: entertaining 420 420
customers
" 10 Repairs to furniture 160 160
" 12 Parcel sent by UPS 188 188
" 15 Plastic files 51 51
" 17 Note pads 24 24
" 18 Daniel: taxi fares 73 73
" 20 Donation to Red Cross 100 100
" 23 Office cleaning 215 215
" 24 Flora: bus fares 19 19
" 26 Registered letters 28 28
" 28 Ball pens 40 40
" 30 Show tickets: 236 236
entertaining
customers
1,653 300 92 115 656 490
" 30 Balance c/d 347
2,000 2,000
347 Oct 1 Balance b/d
1,653 " 1 Cash
Travelling Expenses
20X5 $
Sep 30 Petty cash 92
Stationery
20X5 $
Sep 30 Petty cash 115
Entertainment
20X5 $
Sep 30 Petty cash 656
Miscellaneous Expenses
20X5 $
Sep 30 Petty cash 490
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18.9X
(a) See Section 18.3.
Telephone Expenses
20X4 $
Nov 30 Petty cash 190
Sundry Expenses
20X4 $
Nov 30 Petty cash 206
Travelling Expenses
20X4 $
Nov 30 Petty cash 138
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Motor Expenses
20X4 $
Nov 30 Petty cash 425
Sales Ledger
C Tang
20X4 $
Nov 10 Petty cash 43
K Wong
20X4 $
Nov 29 Petty cash 78
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