Question

Petty cash may be used to pay _________.

• A. The expenses relating to postage and conveyance
• B. Salaries and wages to the final staff
• C. For the purchase of furniture and fittings
• D. Other recurring expenses

Answer 1

The correct option is A The expenses relating to postage and conveyance

There are two kinds of cash book i.e. Main Cash Book and Petty Cash Book. Petty cash book is used to record small value expense items.

A petty cash fund is a small amount of cash kept on hand to pay for minor expenses, such as office supplies or reimbursements. A petty cash fund will undergo periodic reconciliations, with transactions also recorded on the financial statements.