What kind of transactions are recorded in the petty cash book?

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Solution

A petty cash book records transactions that are repetitive in nature, such as postage, stationery etc.

Also read:

Cash Book

Cash Flow Statement

Ledger in Accounting

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Q. Record the following transactions in a Petty Cash Book drawn with suitable columns and then balance the same:

2017		(₹)
Jan. 1	Petty cashier is given a monthly imprest amount of ₹ 10,000. He spent last month ₹ 9,200 and got the balance from the head cashier today.
Jan. 2	Paid for Wages	600
Jan. 3	Paid for sundry expenses	100
Jan. 5	Paid for stationery	700
Jan. 9	Paid for courier charges	200
Jan. 12	Stamps purchased	750
Jan. 14	Paid wages to casual labour	500
Jan. 16	Stationery purchased	400
Jan. 19	Paid for general expenses	610
Jan. 20	Paid for cartage	800
Jan. 22	Paid for advertising	900
Jan. 24	Paid for postage	400
Jan. 25	Paid for Taxi Fare	840
Jan. 27	Paid for entertainment	600
Jan. 29	Paid for carriage	500
Jan. 31	Paid for petty repairs	700

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. 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.

What is petty cash book? Write the advantages of petty cash book?

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.

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What kind of transactions are recorded in the petty cash book?

A petty cash book records transactions that are repetitive in nature, such as postage, stationery etc. Also read: Cash Book Cash Flow Statement Ledger in Accounting Learn about more commerce questions and answers from different topics in business studies, economics and accountancy from our website.