Cashbooks and Petty Cashbooks 2

On 1 September, Peter sent a cheque to his credit supplier, John. This was correctly entered in John’s books. On 10 September, the cheque was returned unpaid due to lack of funds.

Which entries should be made in John’s books on 10 September?

• account to be debited bank

  account to be credited irrecoverable

• account to be debited bank

  account to be credited Peter

• account to be debited irrecoverable debts

  account to be credited bank

• account to be debited Peter

  account to be credited bank

What would not be recorded in the ledgers of a business?

• cash discount

• irrecoverable debts

• trade discount

• wages accrued

Which entries should be made to post the monthly totals of the discount allowed and discount received columns of the cash book?

• credit discount allowed account debit discount received account

• credit income statement debit income statement

• debit discount allowed account credit discount received account

• debit income statement credit income statement

Jasvinder maintains a petty cash book using the imprest system. The monthly imprest of $100 is restored on the first day of each month.

In September the petty cash book showed the following.

total expenses 83

total receipts 7

How much cash did Jasvinder need to restore the imprest on 1 October?

• $24

• $76

• $83

• $100

What is recorded in a petty cash book?

• all cash transactions

• cash purchases and expenses only

• purchases of all small value items

• small cash transactions

Raminder maintains a petty cash book using the imprest system. The monthly imprest of $250 is restored on the first day of each month.

In January the petty cashier spent $105 and received a refund of $15 from a stationery supplier.

How much was given to the petty cashier on 1 February to restore the imprest?

• $90

• $105

• $145

• $160

What is a cheque counterfoil used for?

• to pay a cheque into the bank account

• to pay for goods purchased by cheque

• to record a cheque payment in the cash book

• to record a cheque received in the cash book

Ann maintains a petty cash book using the imprest system.

Which statement is not correct?

• A petty cash book can be maintained by a junior member of staff.

• At any time petty cash vouchers plus the petty cash balance are equal to the imprest

  amount.

• The chief cashier is not asked continually for small sums of money.

• The number of entries in the cash book increases because of the large number of small cash

  payments.