Recording of transactions ii petty cash book solutions. Totals are carried forward from page to page until the end of the periods. Petty cash book problem1 accountancy class 11 youtube. Petty cash book meaning, cash book vs petty cash book. The analytical petty cash book and the imprest system. The difference between the total of the debit items and that of the total column on the credit represents the balance of the petty cash in hand. Petty cash book is maintained to record small expenses such as postage, stationery, telegram. The kanpur shoe company opened a branch at delhi on 1st april 2010.
Enter the following transactions in the petty cash. Considered as the most beneficial method of recording petty cash payments. Record the following transactions in an analytical petty cash book for the month of january 2019. A column for sundries is usually added for miscellaneous. Cash includes currency and coins, although most businesses do not keep much of this type of cash around. While recording the transactions in petty cash book if all the expenses are analyzed and entries are recorded in cash book on the basis. Most cash should be deposited right away in the bank, but a small amount can be kept on hand in a petty cash account earmarked for minor. Petty cash book definition, types, format, examples. You can find the questionsanswers solutions for the chapter 4 of cbse class 11 accountancy in this page. On march 1, 20x1, sherry jones established a petty cash fund. The specimen performa of a simple cash book is given as follows. The petty cash book will be maintained by a separate cashier known as petty cashier in the accounting field.
Read this article to learn about the meaning and preparation of analytical and imprest system of petty cash book. The analytical cash book is a book kept by a petty cashier. When a trader keeps a bank account it becomes necessary to record the. Get all questions and answers of recording of transactions ii petty cash. In module 12, which covered the bank cash book, the advantages of paying all cash and cheques into the bank intact were evident. Besides maintaining a main or general cash book, many companies also maintain a small cash book known as petty cash book to record small day to day expenditures of the business petty cash book is a type of cash book that is used to record minor regular expenditures such as office teas, bus fares, fuel, newspapers, cleaning, pins, and causal labor etc. From the following figures, prepare all the necessary accounts for. Record the following transactions in the analytical petty cash book of mr. In an analytical petty cash book, there exists separate heads for different petty expenses, which makes recording much easier. The petty cashier of john and james company paid cash for the following expenditures during march 2018. In most cases, the petty cash book is an actual ledger book, rather than a computer record.
Just like the cash book, the petty cash book is both a book of original entry. Accounting problems on branch accounts branch accounts. Guru, you can access to ts grewal book solutions in free pdf for accountancy for class 11 so that you can refer them as and when required. Petty cash book is a type of cash book, which use to record small amount of receipts and payment. Petty cash book explanation, format, example, ordinary and imprest. These solutions for books of original entry cash book are extremely popular among class 11 commerce students for accountancy books of original entry cash book solutions come. This involves summarizing all disbursements made and issuing cash back to the fund for that amount.
The petty cash book is a book of vouchers which are made each time an expense. Recording in a petty cash book does not require formal knowledge of accounting principles and techniques. Petty cash book format example definition explanation. Top 16 problems on branch accounts your article library. Give journal entries and post the balances to concerned ledger accounts. In the analytical version, a separate column is used for. Also included as a part of cash are the balances kept at banking and financial institutions. A cash book acts like both a journal and a ledger for cash transactions. Also, pass a journal entry and post them to their respective ledger. Petty cash book introduction cash book accounts class 11 duration.
Thus, the book is part of a manual recordkeeping system. The credit side consists of several analysis columns. In almost all businesses, it is found necessary to keep small sums of. A petty cash book is just another kind of cash book that records petty cash transactions, i. In large business concerns, the petty cash book is maintained in columnar or analytical form, with a separate column for each usual item of expense and a column for. Enter the following transactions in a single column cash book of mr. From the following particulars make cash book of ghulam fatima trading co. An imprest system of petty cash means that the general ledger account petty cash will remain dormant at a constant amount. A three column cash book or treble column cash book is one in which there are three columns on each side debit and credit side. The receipts are recorded in the dr side and the payments are recorded in the cr side of the cash book. Ts grewal accountancy class 11 solutions chapter 7 special. A petty cash is a cash book used to enter all small or petty expenses obtained. For recording transactions in the simple cash book, the foremost step is to understand. Petty cash book free doubts and solutions topperlearning.
Recording of transactions ii petty cash book solutions this page contains the cbse accountancy class 11 chapter recording of transactions ii notes. It also saves time in posting each item of petty payments unnecessarily in the ledger. Petty cash count and cash certificate for the year end balance of cash in hand. This type of petty cash book is known as analytical petty cash book. In this video iam explaining about a problem relating to petty cash book analytical petty cash book link for video on concept of petty cash book. Grewal 2018 solutions for class 11 commerce accountancy chapter 7 special purpose books i cash book are provided here with simple stepbystep explanations. A petty cash book is just another kind of cash book that records petty cash transactions. A separate column is allotted for each type of expenditure.
Petty cash book definition, types, format, examples imprest and. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it. These small cash payments are recorded in a separate book, known as a petty cash book. In addition, the money going into or out of the petty cash fund should be counted more carefully and. When cash is added to a petty cash fund, the basic concept is to replace the amount of any cash that had previously been disbursed from the fund. In a business operating this type of cash book, small cash payments are usually made out of petty cash. In this article we will discuss about the top sixteen accounting problems on branch accounts with their relevant solutions. A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure. Subsequent position of cheques that were not cleared in the year end. The disbursements from the petty cash funds should be supported by cash register tapes, invoices, or other documents. Here we detail about the three types of cash book, i. You need to develop a set of policies or procedures dictating the handling of cash in your business to avoid problems such as theft and misappropriation. Cash book contains individual columns for each expense every small payment is recorded on the credit side. The ts grewal solutions to the questions after every unit of ts grewal textbooks aimed at helping students.
Let us learn about the petty cash book and the various systems of maintaining the said account. Prepare an analytical petty cash book from the following information provided by mr. These solutions for special purpose books i cash book are extremely popular among class 11 commerce students for accountancy special purpose books i cash book solutions come handy. Write up the analytical petty cash book and draft the necessary journal entries for the payments made. The following petty cash transactions occurred during the month. Ts grewal accountancy class 11 solutions chapter 7 special purpose books i cash book. Related topic difference between cost and management accounting analytical petty cash book. An analytical petty cash book is employed by a large concern having a number of transactions of petty amount such petty. Record the above transactions in a petty cash book assuming a petty cash imprest system is used by the john and james company. There are two primary types of entries in the petty cash book, which are a debit to record cash received.
This type enables the businessman to know the information about the amount being spent on each head of petty expense. The keeping of the book is not different from the keeping of the main cash book the amount paid out by the chief cashier is credited in his cash book to complete the double entry. The petty cash book is a formal summarization of petty cash expenditures, sorted by date. Recording of transactions in a petty cash book is easy. Adams petty cash 2part carbonless receipts book, 2. Lecture 5 the analytical petty cash book and the imprest system every business has a number of transactions of very small value which, were they all recorded in the cash book, would only serve to make it more difficult to identify the important transactions that businesses need to keep a close eye upon. One of the total payment column and second in one of the analytical amount columns. On april 1, 2017, hassan sajjad store cash book showed debit balances of cash rs. This quiz and worksheet gauge your knowledge of establishing and replenishing a petty cash fund, as well as what petty cash funds are used for. One is used to record cash transactions, the second is used to record bank transactions and third is used to record discount received and paid. You can find the questionsanswerssolutions for the chapter 4 of cbse class 11 accountancy in this page.
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