A petty cash is a cash book used to enter all small or petty expenses obtained. Checking, savings, and petty cash should be set up as which of the following account types in quickbooks. As i say in the introductory lecture, it is essential that you buy a revision kit from one of the acca approved publishers bpp and kaplan because they are full of exam standard questions for practice and practice is vital to passing the exam. The main advantages of imprest system of petty cash are as follows. If a business keeps a bank account and receipts and payments are frequently made through bank account than it is useful to maintain a three column cash book. This quiz and worksheet gauge your knowledge of establishing and replenishing a petty cash fund, as well as what petty cash funds are used for. Financial accounting tests and answers business book mall. To reconcile the petty cash to the bank statement wrong. So please time yourself while attempting this exercise.
Once you have set up the chart of accounts, you cannot add, delete or modify accounts. Which of the following errors affect the trial balance. Learn how to match transactions on bank statement and cashbook, how to note differences and how to. Simple petty cash book class 11 accountancy cash book.
Debiting the petty cash book with the exact amount spent in the previous. Accounting and procedures for petty cash accounting. On march 1, 20x1, sherry jones established a petty cash fund. Fa chapter 17 questions adjustments to profit and suspense. Accounting english depreciation pronunciation practice. Recognise the separation or division of the ledger into the sales ledger, the purchases ledger and the nominal general ledger including the cash book. The listing of accounts that are available for posting transactions is the. Check your understanding of a petty cash fund in this worksheet and quiz. Notes on petty cash book and petty cash fund other. 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. 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. Candidates do not need to explain or use any folio columns when doing these igcse accounting past year papers. On december 31, the office manager gives instructions to increase the petty cash fund by php 100. If you need a refresher course on this topic you can view our bank.
The petty cashier of john and james company paid cash for the following expenditures during march 2018. Note the analysis columns that enable the transaction to be recorded and analysed at the same time. A listing of the balances in the accounts in order to determine whether debits are equal to credits is a. The following questions have been designed to test your knowledge of all areas. The following is an activity to test you on the words for. Please see teachers notes for explanations, additional activities, and tips and. Analytical 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 for. No apart obviously from the mock exam that we provide.
Acct 301 petty cash exercises chapter 7 name class. Take a quick multiple choice questions mcqs test about cash book. These tools can be used to gauge your knowledge of what these funds can. Since the bank reconciliation statement should be done on a monthly basis, say if a company has a lot of banks, is it possible to outsource the bank reconciliation to the bank itself and what are the disadvantages answer. Accounting english depreciation pronunciation practice englishlearning resources and online english courses with audio. 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. Fill out chemical log book information required, date, incident number, location, quantity and type of material, your name, hazmat. In my experience it is not possible to outsource reconciliations to banks because they do not usually offer this service. 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.
To reconcile the petty cash book to the cash book wrong. Cash book three column cash book practice you may also like to read. Quickbooks practice test 100 questions flashcards quizlet. 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. Petty cash book a petty cash book is shown on the next page. Practical english, accounting english, telephone english, online dictionary and much more. Required c i state the amount of cash there should have been in the petty cash box. Take our basic bank reconciliation test to check out your knowledge of bank reconciliations used in double entry bookkeeping. The following petty cash transactions occurred during the month. Petty cash book explanation, format, example, ordinary and imprest. This is not a buck here or a buck there in the petty cash till. Candidates do not need to explain or use threecolumn runningbalance accounts.
Thus, the book is part of a manual recordkeeping system. Notes, exercises, videos, tests and things to remember on petty cash book and petty cash fund. Its really important when youre preparing for tests and exams to make sure you not only answer questions correctly but also do so at the right speed especially important for long exercises like this. Imprest system of petty cash fund the world impress means advance amount which is personal to certain person to make petty expenses.
Company trial balance and financial statements question. The petty cash book will be maintained by a separate cashier known as petty cashier in the accounting field. A petty cash voucher is usually a small form that is used to document a disbursement payment from a petty cash fund. Petty cash exercises answers expense accounting scribd. Borrowing money from colleagues at work, petty cash, or from neighbours is a fast way of making yourself unpopular. Petty cash book explanation, format, example, ordinary. The bank reconciliation process is a means of ensuring that the cash book of the business is reconciled to the bank statement provided by the bank. 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. Single entry double entry bookkeeping terms testsquizzes. The tests are only supposed to be short checks after each chapter.
So, petty cash book is the cash book that records the petty expenses. These mcqs can help you to prepare for your exams, interviews and. The credit side consists of several analysis columns. Bank reconciliation exercises and answers free downloads.
Petty cash is an important method of running an effective organization. These mcqs can help you to prepare for your exams, interviews and different tests. Petty cash book format example definition explanation. Igcse accounting past year papers 0452 download twins. To reconcile petty cash and paid vouchers to the authorized petty cash float. Accounting for management explanations, exercises, problems and calculators. 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. A s the petty cashier has to produce to the chief cashier the petty cash book for inspection, it acts as a healthy check on the petty cashier. If you find difficulty in answering these questions, read cash book chapter thoroughly from explanation section of the. 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. The three column cash book also known as triple column cash book has three money columns on both debit and credit side one on each side for recording discount, cash and bank amounts. 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.
It is another cash book which is maintained, generally, in large. Introduction to petty cash book accounting letstute accountancy. Petty cash vouchers are also referred to as petty cash receipts and can be purchased from office supply stores the petty cash voucher should provide space for the following. Analytical cash book class 11 accountancy cash book. Cash book multiple choice questions mcqs quiz with answers. A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure.
The fund is replenished based on the following receipts. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and postage. 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. Free bank reconciliation exercises and answers in pdf and excel. These items are usually paid for out of the petty cash. For this purpose, a petty cashier is appointed by the chief cashier. Notes, exercises, videos, tests and things to remember on petty cash book. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and. Notes on petty cash book grade 10 accountancy petty cash. Basics of bookkeeping quiz double entry bookkeeping. These small expenditures are usually paid using coins and currency notes rather than checks. Petty cash book is a formal summarization of petty cash expenditures, sorted by date. 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.