FINANCIAL ACCOUNT 101.

PETTY CASH BOOK.

Hello Everyone, it’s a New Day to learn and have fun. We are focusing on the above mentioned topic today. Guyz, am new at this so don't mind the awkward tables drawn for yesterday's topic.

Petty Cashbook is the book for recording small expenses. For example- Postage, Stationery, Transport etc. The system for recording petty cash transactions is called IMPEST SYSTEM. In this system, a specific amount is given to cashier to start off accounting period. This specific amount is called CASH FLOAT. The source document for petty cashbook are involved receipts and vouchers.

PROCEDURES OF PETTY CASHBOOK.

1. Cash float amount.

    Credit Cash book.

    Debit petty cashbook.

2. Ruling the petty cashbook.

    Credit side is wider than debit side.

    Credit side is analysis column which must not be totaled intervals and the total transferred to respective nominal ledger.

3. Reimburse the petty cash every week or month using the imprest system to bring the amount back to the formal account.

ILLUSTRATION:

Stanley Limited operates a Petty Cash Book on the Imprest System. The following transactions took place in June 1990.

June 1- Received from Cashier N3,000.

June 2- Postage N180

June 3- Traveling N120

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FINANCIAL ACCOUNT 101.

    REVISION OF FINANCIAL ACCOUNT 101 CONTD.

Hey Guys, It’s a New Day to learn and have fun. The Easter Period is really in the ear and I hope you all have great plans to enjoy this holiday season. Any way we have to finish our revision today on Financial Account 101 for us to fully grasp the foundation of Financial Accounting.

DOUBLE COLUMN CASH BOOK.

This is a cashbook that has folders for cash and bank transactions.

ILLUSTRATION:

Enter the following transactions in the cash book and ledger accounts of Mr. Timi for the year 2009.

Jul 1. Proprietor puts in capital into the bank account for the business N 1,500.

Jul2. Purchases on credit from S. Sharon N 260.

Jul 3. Cash Purchases N 350.

Jul 4. Paid cheque to S. Sharon N 245.

Jul 5. Paid rent by cash N 100.

Jul 6. Cash Sales N 150.

Jul 7. Cash Sales paid directly into the bank N 100.

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FINANCIAL ACCOUNT 101.

    REVISION OF FINANCIAL ACCOUNT 101 SO FAR.

Hey Guyz, Happy Monday. Easter is fast approaching when Jesus was crucified for our sins upon the cross of Calvary…. I pray God opens our eyes to see just how much he loves us…..

Okay so today we face Account and we are revising all we have done so far, in order to remind ourselves of the foundation of Account.

BOOK-KEEPING we said is the act of receiving and classifying financial transactions in a systematic way, in order to show the financial position of a business at anytime. It is carried out by using the Double Entry System.

ACCOUNTING is the recording, classifying, creating, summarizing and communicating of financial information to interested parties to help in making specific business decision.

It includes the design of the financial information system, preparation of financial statements, development of forecast and analysis, and interpretation of

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