Cambridge IGCSE and O Level Accounting

Exam-style questions
1 A trader maintains a petty cash book using the imprest system. The monthly imprest is
$120. The petty cash transactions during August were:

$
Payments Taxi fare 12
Stationery 31
Postage 8
Waheed, a credit supplier 43
Receipts Refund for damaged stationery 11

How much was given to the petty cashier on 1 September to restore the imprest?

A $26 B $37 C $83 D $94

2 A trader provided the following extract from her petty cash book:

Date Details Total paid Cleaning Office Ledger

expenses accounts
$ $ $ $
April 4 Tea and coffee 10 10
18 Thomas 33 33
21 Copy paper 18 18
58
29 Cleaning 250 250

What entries are made in the ledger on 30 April?

A Credit cleaning account, office expenses account, ledger accounts

B Credit cleaning account, office expenses account, Thomas account
C Debit cleaning account, office expenses account, ledger accounts
D Debit cleaning account, office expenses account, Thomas account.

3 On 1 August the petty cash balance equalled the imprest amount of $100. During August
the petty cashier spent $83 and received $20 from a member of staff in repayment of a loan.
What entry will be made on 31 August to restore the imprest?

Debit $ Credit $
A bank 63 petty cash book 63

B bank 83 petty cash book 83

C petty cash book 63 bank 63

D petty cash book 83 bank 83

 Chapter 5: Petty cash books

4 Robin is a sole trader. He operates a petty cash book using the imprest system with a float
of $100 at the beginning of each month. The imprest was restored on 30 April so there is
an opening balance of $100 on 1 May.
Details of petty cash vouchers presented during May were as follows:

Voucher number Total amount

$
May 1 Milk, tea and sugar 9 5.20
6 Postage stamps 10 10.50
14 Cleaner’s wages 11 30.00
17 Envelopes 12 7.40
21 Parcel postage 13 2.90
24 Milk and tea 14 3.10
28 Cleaner’s wages 15 30.00
30 Computer paper 16 4.70

a Write up Robin’s petty cash book for May. Use analysis columns for postages, cleaning,
stationery and refreshments. Total and balance the book on 31 May.
b i State one reason why a business may operate a petty cash book.
ii State one advantage of operating the imprest system of petty cash.

5 Abdul maintains a petty cash book with an imprest amount of $150, which is restored on
the first day of each month. 59

He provided the following information on 31 August:

$
Total of sundry expenses column 13
Total of postage column 19
Total of cleaning column 45
Total of ledger accounts column 62

a Explain the imprest system of petty cash.

b State the total amount spent by the petty cashier in August.
c State the double entry which will be made for the total of the sundry expenses column
on 31 August.
d State how the double entry will be made in the ledger for the items in the ledger
accounts column.
e State what entry will appear for petty cash in the statement of financial position on
31 August.
f State how much the petty cashier will receive on 1 September to restore the imprest.
 Cambridge IGCSE and O Level Accounting

6 Shilpa is a sole trader. She pays all receipts into the bank at the end of each day’s trading
and all payments are made by cheque, except for those less than $20 which are regarded
as petty cash items.
She provided the following information:

Date Detail Amount

20–9 $
Feb 21 Balance at bank 3 120
Petty cash imprest 50
22 Paid South West Traders 721 to settle an account of $750
24 Received cheques:
Janpath Stores 410 to settle an account of $425
AB Trading 220
26 Paid:
Window cleaner 7
Speedy Motors 85
Petrol 11
27 Paid:
Refreshments 5
Ghandi Stores 12

a Write up the petty cash book for the week ended 28 February 20–9. Use analysis
60
columns for refreshments, cleaning, motor expenses and ledger accounts.
Balance the book on 27 February 20–9 and restore the imprest on 28 February 20–9.
b Write up the cash book for the week ended 28 February 20–9.
Balance the book at 28 February 20–9 (after the restoration of the petty cash imprest).