Cash Book & Petty Cash Book

A _________ is one which appears on both sides of the cash book.

• Correction Entry

• Adjustment Entry

• Contra Entry

• Entry for Cash Purchases

A _______ occurs when more has been paid out of the bank than was put into the bank account

• bank balance

• bank overdraft

• profit

• loss

From the following which is an example of contra entry?

• Purchased goods for cash

• Sold goods for cash

• Cash paid into the bank

• Withdrawn cash from bank for personal use

The ________ columns in the cash book are not a part of the double entry system.

• Cash

• Bank

• Discount

Discount column on the debit side of the cash book represents to __________ .

• Discount Received

• Discount Allowed

A ________ book is used to record low-value (petty) cash payments.

• Purchases

• Sales

• Cash

• Petty Cash

The ___________ of petty cash is where the amount spent each period is restored so that the petty cashier starts each period with the same amount.

• Cash System

• Imprest System

• Credit System

• Current System

Petty cashier starts each period with a fixed amount of money. This is known as the _________ .

• Imprest amount

• bank balance

• cash balance

• bank overdraft

A trader maintains a petty cash book using the imprest system. The monthly imprest is $120. The petty cash transactions during August were -

Payments: Taxi fare $12; Stationery $31; Postage $8; Waheed, a credit supplier $43

Receipts: Refund for damaged stationery 11

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

• 26

• 37

• 83

• 94

Journal entry to restor petty cash is:

• Debit: Cash A/c

  Credit: Petty Cash A/c

• Debit: Petty Cash A/c

  Credit: Cash A/c

• Debit: Cash A/c

  Credit: Bank A/c

• Debit: Bank A/c

  Credit: Cash A/c