Accounting Project
Question 1
Petty Cash Book of Mr. John for the month of January 2024
Debit Date
Detail
32
1 March
Bal b/d
368
1 March
Bank
5 March
Travelling
50
9 March
Postage
25
5
Credit
12 March Repair
45
18 March Ali
75
21 March Stationary
15
23 March Repair
65
Travelling Postage
Repair
Ledger
Stationary
50
25
45
75
15
65
25 March Postage Refund
26 March Stationary
30
27 March Ben
55
Total
360
405
31 March Bal c/d
405
Total
45
1 April
Bal b/d
355
1 April
Bank
45
405
30
55
50
25
110
130
45
Question 2
Travelling
Date
Detail
31 March
Petty Cash
Amount
Date
Detail
Amount
Detail
Amount
Detail
Amount
Detail
Amount
Detail
Amount
Detail
Amount
50
Postage
Date
Detail
31 March
Petty Cash
Amount
Date
25
Repair
Date
Detail
31 March
Petty Cash
Amount
Date
110
Stationary
Date
Detail
31 March
Petty Cash
Amount
Date
45
Ali
Date
Detail
18 March
Petty Cash
Amount
Date
75
Ben
Date
Detail
27 March
Petty Cash
Amount
55
Date
1) A petty cash imprest system is a fixed amount of money kept inside
a petty cash box. At the beginning of every month, the amount spent
needs to be reimbursed to the fixed imprest amount.
2) The three advantages of a petty cash system is that it does not
overcrowd the cash book. It also saves precious management time.
Finally, it can prevent fraud from happening.
3) The source document that needs to be prepared is a petty cash voucher.
The four items that are recorded in the petty cash voucher are the date of
expense, the amount of money spent, the purpose of the expense and the
information of the payee.