Task 1
Q1. State the advantages of maintaining a petty cash book.
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Q2. State two advantages and two disadvantages of preparing and maintaining a cash book.
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Q3. What is meant by a bank statement?
_____________________________________________________________________________________
_____________________________________________________________________________________
Q4. Why do businesses prepare a bank reconciliation statement?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Task 2.
Cash book
Date
Details
Bank
($)
Cash
($)
Date
Details
Bank
($)
Cash
($)
(i)
Complete the above cash-book using the following information, carrying the balances down
to the following month.
[ 15 marks ]
2020
July 1 Started business with $4000 in the bank
2 Paid for fixtures by cheque, $660
4 Cash sales $225
4 Paid rent by cash, $140
6 T Thomas paid us by cheque, $188
8 Cash sales paid direct into the bank, $308
10 J King paid us in cash, $275
12 Paid wages in cash, $275
14 J Walters lent us $500 paying by cheque
15 Withdrew $200 from the bank for business use
20 Bought stationery paying by cash, $60
22 We paid J French by cheque $166
28 Cash drawings $100
30 J Scott paid us by cheque $277
31 Cash sales $66
(ii)
Prepare ledger accounts for each transaction that happened in the month of July, carrying
the balances to the following months.
[ 15 marks]
Rent
Date
Details
Amount ($)
Date
Details
Amount ($)
T Thomas
Date
Details
Amount ($)
Date
Details
Amount ($)
Date
Details
Amount ($)
Date
Details
Amount ($)
Details
Amount ($)
Details
Amount ($)
Date
Details
Amount ($)
Date
Details
Amount ($)
J King
Date
Details
Amount ($)
Wages
Date
Details
Amount ($)
Sales
Date
Details
Amount ($)
Date
Drawings
Date
Details
Amount ($)
Date
Stationery
Date
Details
Amount ($)
J French
Date
Details
Amount ($)
J Walters
Date
Details
Amount ($)
Date
Details
Amount ($)
Date
Details
Amount ($)
Date
Details
Amount ($)
Fixtures
Date
Details
Amount ($)
Capital
Date
Details
Amount ($)
Task 3.
Use the following transactions to complete the petty cash book. Total and balance the petty cash book
and show clearly the amount of cash received to restore the imprest.
[22 marks]
2020
May 1 The petty cashier receieved a cash floatof $200 from the cashier
2 Stationery $14.10 including VAT $2.35
4 Postage stamps,$22.00