The advantages of imprest system of petty cash include:
1. The main (or head) cashier is relieved of maintaining record of petty payments
2. Small payments are not stuffed in the main cash book.
3. Complete and reliable check is maintained on small items of expenses
4. It is automatically balanced.

1, 2

and

4

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1, 2

and

3

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2, 3

and

4

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2

and

4

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Solution

The correct option is D $1, 2$ and $3$
The advantages of imprest system of petty cash include:
1. The main (or head) cashier is relieved of maintaining record of petty payments
2. Small payments are not stuffed in the main cash book.
3. Complete and reliable check is maintained on small items of expenses

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Similar questions

Q. When Petty Cash is advanced to the Petty Cashier, the main cashier will record it on the debit side of Cash Book.

Q. Imprest system of Petty Cash book is system in which head cashier first estimates the total petty expenses of a particular period say month or fortnight and estimated amount is given to petty cashier in advance to meet petty expenses of particular period.

The fundamental difference between the Main Cash Book and the Petty Cash Book is that only petty expenses are recorded in the Petty Cash Book. No receipt with the exception of money received from ___are recorded.

Q. A Petty Cashier in a firm received ₹ 15,000 as the petty cash imprest on 4th June, 2018. During the week, his expenses were as follows:

2018		₹
June 4	Conveyance charges for Manager's trip to the city	500
June 4	Wages to casual labourers	1,500
June 5	Bus fare to workmen sent to customer's premises	200
June 5	Stationery purchased for ₹ 1,000 plus CGST and SGST @ 6% each
June 6	Sent documents to Head Office by registered post	400
June 6	Postage stamps purchased	1,000
June 6	Revenue stamps for payment of wages	500
June 7	Repair of printer	400
June 7	Paid electricity bill	1,700
June 8	Wages paid to coolies for shifting furniture, etc.	400
June 8	Taxi fare to Assistant Manager	500
June 8	Letters by registered post sent to different suppliers	1,000
June 8	Locks purchased for ₹ 800 plus CGST and SGST @ 6% each
June 8	Stationery purchased for ₹ 400 plus CGST and SGST @ 6% each
June 8	Refreshments to customers	200

Write up the Analytical Petty Cash Book and draft the necessary Journal entries for the payments made.

Q. With Goods and Services Tax (GST)

A Petty Cashier in a firm received ₹15,000 as the petty cash imprest on 4th June, 2017. During the week, his expenses were as follows:

2017		₹
June 4	Conveyance charges for Manager's trip to the city	500
June 4	Wages to casual labourers	1,500
June 5	Bus fare to workmen sent to customer's premises	200
June 5	Stationery purchased for ₹1,000 plus CGST and SGST @ 6% each
June 6	Sent documents to Head Office by registered post	400
June 6	Postage stamps purchased	1,000
June 6	Revenue stamps for payment of wages	500
June 7	Repair of typewriter	400
June 7	Paid electricity bill	1,700
June 8	Wages paid to coolies for shifting furniture, etc.	400
June 8	Taxi fare to Assistant Manager	500
June 8	Letters by registered post sent to different suppliers	1,000
June 8	Locks purchased for ₹800 plus CGST and SGST @ 6% each
June 8	Stationery purchased for ₹400 plus CGST and SGST @ 6% each
June 8	Refreshments to customers	200

Write up the Analytical Petty Cash Book and draft the necessary Journal entries for the payments made.

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The advantages of imprest system of petty cash include:1. The main (or head) cashier is relieved of maintaining record of petty payments2. Small payments are not stuffed in the main cash book.3. Complete and reliable check is maintained on small items of expenses4. It is automatically balanced.

The correct option is D 1,2 and 3The advantages of imprest system of petty cash include:1. The main (or head) cashier is relieved of maintaining record of petty payments2. Small payments are not stuffed in the main cash book.3. Complete and reliable check is maintained on small items of expenses

The advantages of imprest system of petty cash include:
1. The main (or head) cashier is relieved of maintaining record of petty payments
2. Small payments are not stuffed in the main cash book.
3. Complete and reliable check is maintained on small items of expenses
4. It is automatically balanced.