Petty cash – lesson 10

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Petty cash is a key part of the free Processing Bookkeeping Transactions Course and Accounting Trainees must know how to record payments and receipts.

You are part way through the FREE Processing Bookkeeping Transactions Course and you should have read the pages listed below before reading this page:

PROCESSING BOOKKEEPING TRANSACTIONS COURSE: lesson 1

Welcome to accounting for Petty Cash.

We studied the Cash Book in the previous chapter, but the petty cash book as its name implies is used to record minor amounts of expenditure, such as tea and coffee, postage stamps etc. In themselves they may be petty but in total they soon add up to be significant amount and must be accounted for.

petty cash bookPetty cash book and the cash float or imprest system.

The petty cash book and the imprest system used to balance the float are very popular with Accounting and ICB examiners, and you must understand the relationship between the cash book and the petty cash book.

You must be able to explain the nature and purpose of the financial documents behind the petty cash book such as vouchers and receipts and be able to record them in the correct column of the petty cash book.

It is often the Bookkeeper’s or the Accounting Trainee’s job to act as the petty cashier and to keep a petty cash box under lock and key.

Now lest test you knowledge of the petty cash book – try the quiz below.

Here is the link to Amazon for the course books:

Quiz : Petty Cash Book





 

QUIZ: Before attempting this quiz you should have read chapter 9 entitled "Petty Cash Book" of your recommended textbook “Bookkeeping 1".

Please attempt all questions and then press the submit button at the end, you will then be taken to your results page.

Good luck!



Name


1
Columns used in the petty cash book used to record the different types of expenditure are called ......................... columns



2
The person responsible for the petty cash book is often the bookkeeper or Accounting trainee and is sometimes called the petty cashier.


3
The amount of money held in the petty cash box at any one time is often referred to as the ............



4
A system where the amount of money in the petty cash box is restored to a set amount each week is called an ................ system.



5
Payments for taxi fares would be recorded on the ............. side of the petty cash book.



6
Petty cash receipts are recorded on the .......... side of the petty cash book.


7
The bookkeeper or the Accounting trainee would write up the petty cash book from the petty cash ....................


8
When an accounting system treats the petty cash book solely as a book of prime entry, a petty cash .............. account is used in the general ledger to complete the double entry.



9
Tick the following items of expenditure that would typically be included in a petty cash book.








10
The entries in the petty cash book at the end of each month are transferred to the general ledger where the total of each analysis column is ............ to the relevant account.









Leaderboard for Petty Cash Book

1. mmm-33 Points
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3. -33 Points
4. MOOKETSI BOSEJA-33 Points
5. Memyselfi-33 Points

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