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
June 7- Petrol N220
June 9- Traveling N250
June 11- Stationery N170
June 13- Cleaning N180
June 14- Traveling N80
June 16- Postage N150
June 18- Stationery N90
June 18- Cleaning N230
June 20- Postage N130
June 21- Delivery Van N430
June 23- Petrol N180
June 25- Cleaning N210
June 27- Postage N50
June 28- Ayo N60
June 29- Petrol N140
You are required to: a.)
Prepare a Petty Cash Book.
b.) Post the Entries to the Ledger
account.
Receipt
|
Folio
|
Date
|
Details
|
Voucher No
|
Total
|
Postage
|
Stationery
|
Traveling
|
Cleaning
|
Motor Expenses
|
Ledger
|
3,000
|
1-Jun
|
Bal b/d
|
|||||||||
June 2
|
Postage
|
180
|
180
|
||||||||
3-Jun
|
Traveling
|
120
|
120
|
||||||||
4-Jun
|
Cleaning
|
150
|
150
|
||||||||
7-Jun
|
Petrol
|
220
|
220
|
||||||||
9-Jun
|
Traveling
|
250
|
250
|
||||||||
" 11
|
Stationery
|
170
|
170
|
||||||||
" 13
|
Cleaning
|
180
|
180
|
||||||||
" 14
|
Traveling
|
80
|
80
|
||||||||
" 16
|
Postage
|
150
|
150
|
||||||||
" 18
|
Stationery
|
90
|
90
|
||||||||
" 18
|
Cleaning
|
230
|
230
|
||||||||
" 20
|
Postage
|
130
|
130
|
||||||||
" 21
|
Delivery Van
|
430
|
430
|
||||||||
" 23
|
Petrol
|
180
|
180
|
||||||||
" 25
|
Cleaning
|
210
|
210
|
||||||||
" 27
|
Postage
|
50
|
50
|
||||||||
" 28
|
Ayo
|
60
|
60
|
||||||||
" 29
|
Petrol
|
140
|
140
|
||||||||
3,020
|
510
|
260
|
450
|
770
|
970
|
60
|
|||||
3,020
|
30-Jun
|
Cash
|
3,000
|
||||||||
6,020
|
30-Jun
|
Bal c/d
|
6,020
|
||||||||
3,000
|
July 1st
|
Bal b/d
|
Ledger Entries:
Dr
|
Cashbook A/C
|
Cr
|
|||
Date
|
Particulars
|
Amount
|
Date
|
Particulars
|
Amount
|
1-Jun
|
Petty Cash
|
3,000
|
|||
30-Jun
|
Petty Cash
|
3,020
|
|||
Dr
|
Postage A/c
|
Cr
|
|||
Date
|
Particulars
|
Amount
|
Date
|
Particulars
|
Amount
|
30-Jun
|
Petty Cash
|
510
|
|||
Dr
|
Stationery A/c
|
Cr
|
|||
Date
|
Particulars
|
Amount
|
Date
|
Particulars
|
Amount
|
30-Jun
|
Petty Cash
|
260
|
|||
Dr
|
Traveling A/c
|
Cr
|
|||
Date
|
Particulars
|
Amount
|
Date
|
Particulars
|
Amount
|
30-Jun
|
Petty Cash
|
450
|
|||
Dr
|
Cleaning A/c
|
Cr
|
|||
Date
|
Particulars
|
Amount
|
Date
|
Particulars
|
Amount
|
30-Jun
|
Petty Cash
|
770
|
|||
Dr
|
Motor Exp. A/c
|
Cr
|
|||
Date
|
Particulars
|
Amount
|
Date
|
Particulars
|
Amount
|
30-Jun
|
Petty Cash
|
970
|
|||
Dr
|
Ayo A/c
|
Cr
|
|||
Date
|
Particulars
|
Amount
|
Date
|
Particulars
|
Amount
|
30-Jun
|
Petty Cash
|
60
|
30-Jun
|
Bal b/f
|
60
|
This concludes our session for
today, Hope you had fun and found it simplified, and easy to understand. For
your comments leave them below and for your messages send to- dividiamond@gmail.com. Until we meet again, remain ever blessed, and remember you
are for SIGNS & WONDERS. God Bless u.
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