08 .

THE CASH & PETTY CASH BOOK

What is a cash book?

★ Cash book is a prime entry book in which receipts and
payments of cash related transactions are recorded .
★ Receipts → debit
★ Payments → credit

What is the dual function of a cash book ?

● Cash book as a prime entry book recording receipts &
payments , it also acts as a ledger account recording debit
& credit sides.

ACTIVITY 01
PREPARE THE CASH BOOK

DATE R/N V/N DETAIL

01.01 01 CAPITAL INVESTED RS 200,000
02 .01 001 BOUGHT GOODS FOR RESALE RS 50,000
04.01 02 OBTAINED BANK LOAN RS 80, 000
08.01 002 BOUGHT FURNITURE RS 10,000
15.01 003 Rent paid rs 5000
18.01 03 Goods sold for cash rs 20000
24.01 04 Cash received from pawan rs 2000
 DISCOUNTS
1 . TRADE DISCOUNTS → DISCOUNTS GIVEN WHEN
TRADING .

2 . CASH DISCOUNTS → DISCOUNT GIVEN WHEN PAYING.

DISCOUNT ALLOWED → EXPENSE → DEBIT

DISCOUNT RECEIVED → INCOME → CREDIT

Past papers
2020 ol
Provincial papers
 PETTY CASH BOOK
It is a prime entry book in which small value
transactions are recorded .

What is petty cash imprest?

- It is a specific amount given by the main cashier to
the petty cashier to do petty cash payments .

What is reimbursement?
- The amount given to the petty cashier equivalent to
the expenses made in the month .

Ex01
Petty cash imprest of sarah's business is rs 2000
Expenses of the month are as follows:
Stationary - 250
Cleaning 550
Entertainment 450
Travelling 350

Find the petty cash balance ?

Find the reimbursement?

DOUBLE ENTRIES
When money is received by the petty cashier

Petty cash book DR

Cash book CR
When payments are done by petty cashier

Relevant expense a/c DR

Petty cash book CR

ex02
ACTIVITY 05 textbook

PAST PAPER QUESTIONS

2019 ol
2016 ol
MCQS
2018 ol
2017 ol

2020 ol

2021 ol