Cash Book and Petty Cash Book

A Cash Book is used to ______

•    record receipt of cash

   

• record cash transactions

• record credit transactions

• record payments by cheque

Which of the following source documents will NOT be used to record transactions in the cash book?

• paying-in slip

      

•   bank statement

• petty cash voucher

• cheque counterfoil

A contra entry is when _______

• cash is paid out to a supplier

•    cash is used for business purposes

•    a double entry is done in the cash book

• the owner takes money for personal use

The Petty Cash Book is used to ______

• record cash received only

• record minor cash payments

•   record small cash transactions

• record cash and bank transactions

The source document used to record information in the petty cash book is called a ______

•     paying-in slip

      

• bank statement

• petty cash voucher

• cheque counterfoil 

John starts the month with a cash float of $400. He spends $50 on cleaning supplies, $25 on petrol, $75 on stationery and $35 on staff travelling expenses.

How much money should be reimbursed to start the next month?

• $185

• $215

• $400

• $585

Jill keeps a cash float of $300. She spends $80 on flowers for reception area, $35 for staff function, $50 for dog license and $20 for cleaning supplies. How much will she start the next month with?

• $115

• $185

• $300

• $485

One reason for keeping a petty cash book is ______

• to reduce the clutter in the sales ledger

• to give the senior accounts more free time

• to reduce theft and fraud

• to ensure junior staff has some work to do

The total expenses from the petty cash book is posted to the ___

• expenses account in the general ledger

• expenses account in the sales ledger

• discounts accounts in the general ledger

• expenses accounts in the general journal

Jake paid us a cheque of $5 850 after giving him a 2.5% discount.

What was the discount amount?

• Discount allowed of $150

• Discount allowed of $146

• Discount received of $150

• Discount received of $146