AAT Level 2 - ITBK Petty Cash Recap

The petty cash book is a book of prime entry for low-value cash payments and can be used as a double-entry account

• True

• False

Who controls the petty cash book

• Accounts assistant

• The petty cashier

• Accountant

• Bookkeeper

) What term is used to refer to a procedure where the money held in the petty cash float is restored to the same amount for the beginning of each week or month?

• Mimprest system

• Inprest system

• Imprest system

State the name of the financial document against which payments are made out of petty cash.

• Invoice

• Receipt

• Petty cash voucher

• Remittance

On what side of the petty cash book is the amount column which records the amount paid out on each petty cash voucher?

• Debit side

• Credit side

You start the week with imprest amount of £100. There was £70 paid out of petty cash during the week. What will be the amount drawn out from the bank to restore the imprest amount for the following week?

• £100

• £70

• £30

You record stamps £2.50 (no VAT) as postages in the petty cash book. What is the double entry?

• Debit petty cash £2.50,Credit postages £2.50,

• Debit postages £2.50, Debit VAT £0.50, Credit petty cash £2.50

• Debit postages £2.50, Credit petty cash £2.50

Receipts and invoices for small amounts do not have to show the VAT seperately?

• True

• False

You receive a receipt for stationery costing £6.60. How much VAT was charged?

• £1.10

• £1.20

• £1.32

• £1.52

You want to apply for a promotion to Petty Cashier, but the owner tells you not to, as there is someone else applying for it and they do not have children, meaning they are more flexible. Is this discrimination?

• Yes

• No