Which of the following payments is made from petty cash?

Purchase of non-current assets.

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Payment to creditors.

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Cash deposited into a bank.

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Payment of postage and telegrams.

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Solution

The correct option is D
Payment of postage and telegrams.

Answer: (D) Payment of postage and telegram
Explanation: Payment of postage and telegrams are made from the petty cash book because the expenses incurred are minute and a cheque can’t be issued for the same. A petty cash book records the daily expenses of a business which are important to the business but are minuscule in nature.
Also see:
MCQs on Journal Entries
Types of Cash Book

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Similar questions

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

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

Prepare a Petty Cash Book on the Imprest System from the following:

2017
April 1	Received ₹ 10,000 for Petty Cash.
3	Paid Cartage ₹ 800.
4	Paid Bus Fare ₹ 400; Speed Post ₹ 200.
6	Paid for Stationery ₹ 700.
7	Paid for Courier Services ₹ 300.
9	Paid for Taxi fare ₹ 800; Wages ₹ 300.
10	Paid for Wages ₹ 400; Charity ₹ 500
11	Paid for Newspaper bill ₹ 600.
12	Paid for soap ₹ 320; Speed post charges ₹ 300.
13	Paid for Postage ₹ 780.
14	Paid for Repairs of Chairs ₹ 500.
15	Paid for Refreshment to customers ₹ 900.

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