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Banking Transactions

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Question

What do you understand by imprest amount in petty cash book?

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Solution

Imprest amount is a definite sum of money that is provided to petty cashier for a certain period which can be a week or month. Reimbursement is done after the end of the period in order to start a new cycle.

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What do you mean by the Imprest System followed by business concerns for managing petty cash expenses?

Q. Enter the following transactions in a petty cash book in analytical form. The book is kept on imprest system, amount of imprest being ₹ 5,000.

2016
April 3	Petty Cash in hand ₹ 420. Received cash to make-up the imprest.
	Bought stamps for ₹ 300.
April 5	Paid for office cleaning ₹ 200 and repairs to furniture ₹ 250.
April 7	Paid bus fare ₹ 440, railway fare ₹ 330, wages ₹ 200.
April 8	Paid for charity ₹ 350
April 9	Bought shorthand note book for office ₹ 250, Carriage on parcels ₹ 280.
April 10	Bought envelopes ₹ 450, served refreshment to customers ₹ 150.
April 12	Paid for conveyance ₹ 300. Wages ₹ 200. Stapler pins ₹ 280.
April 15	Gave tips to office peon ₹ 250.

Q. Record the following transactions in a Petty Cash Book with suitable columns. The book is kept on imprest system, amount of imprest being ₹ 4,000.

2017
April 1	Petty cash in hand ₹ 540, Received cash to make-up the imprest.
	Paid for office cleaning ₹ 100.
April 4	Paid railway fare ₹ 320, bus fare ₹ 280, wages ₹ 150.
April 5	Bought shorthand note books for office ₹ 370.
April 7	Paid carriage on parcels ₹ 150, paid for wages ₹ 220.
April 10	Bought stamps for ₹ 300, envelopes for ₹ 450 and an accounts register for ₹ 400.
April 12	Paid for repairs ₹ 200, gave tips to office peon ₹ 150.
April 13	Gave charity ₹ 100, served tea to customers ₹ 250.
April 15	Paid for wages ₹ 160, rewards to servant ₹ 100.

Q. Sri R maintains a Columnar Petty Cash Book on the Imprest System. The imprest amount is ₹ 5,000. From the following information, show how his Petty Cash Book would appear for the week ended 12th September, 2017:

2016		₹
Sept. 7	Balance in Hand	1,349
	Received cash reimbursement to make up the imprest
	Postage	123
	Stationery	321
	Entertainment	54
Sept. 8	Travelling and conveyance	126
	Miscellaneous expenses	11
	Entertainment	72
Sept. 9	Repairs	1,567
Sept. 10	Postage	174
	Entertainment	127
	Travelling	673
Sept. 11	Stationery	41
	Entertainment	12
Sept 12	Miscellaneous expenses	201
	Travelling	51
	Postage	483
	Repairs	30

Q. Sri R maintains a Columnar Petty Cash Book on the Imprest System. The imprest amount is ₹ 5,000. From the following information, show how his Petty Cash Book would appear for the week ended 12th September, 2018:

2018		₹
Sept. 7	Balance in Hand	1,349
	Received cash reimbursement to make up the imprest
	Postage	123
	Stationery	321
	Entertainment	54
Sept. 8	Travelling and conveyance	126
	Miscellaneous expenses	11
	Entertainment	72
Sept. 9	Repairs	1,567
Sept. 10	Postage	174
	Entertainment	127
	Travelling	673
Sept. 11	Stationery	41
	Entertainment	12
Sept. 12	Miscellaneous expenses	201
	Travelling	51
	Postage	483
	Repairs	30

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