11 mark
What does a business record in its petty cash book?
all cash transactions
all purchases of small value items
cash purchases and expenses only
small cash transactions
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The Cash & Petty Cash Books (Cambridge (CIE) IGCSE Accounting)
Exam Questions
7 mins7 questions
21 mark
Which of the following statements about a three-column cash book are correct?
It contains ledger accounts for the bank and cash accounts.
It contains ledger accounts for discounts allowed and discounts received.
It records transactions before they are recorded in the ledgers.
1 only
1 and 2
1 and 3
2 and 3
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31 mark
Which of the following is true for cash discounts received?
they are recorded in the cash book | they increase profit for the year | |
|---|---|---|
A | ✘ | ✘ |
B | ✘ | ✓ |
C | ✓ | ✘ |
D | ✓ | ✓ |
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41 mark
Edwin, a trader, maintains a petty cash book using the imprest system. The imprest amount is $200. During the month of October, the petty cash transactions were:
$ | |
receipts from customers | 32 |
payments | |
stationery | 19 |
train fare | 37 |
postage | 13 |
payment to a supplier | 51 |
How much was given to the petty cashier on 1 November to restore the imprest?
$88
$112
$120
$200
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51 mark
A petty cashier received $90 from the chief cashier, as well as $15 from an employee to pay for goods the employee took for personal use.
How would these amounts be recorded in the cash book and the petty cash book?
debit cash book $ | credit cash book $ | debit petty cash book $ | credit petty cash book $ | |
|---|---|---|---|---|
A | 0 | 90 | 15 | 90 |
B | 0 | 90 | 90 | 15 |
C | 0 | 90 | 105 | 0 |
D | 90 | 0 | 0 | 105 |
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61 mark
On 1 October 2024 the bank column of Madwen's cash book had a credit balance of $130.
During October cheques totalling $830 were received and cheques totalling $780 were paid to suppliers. In addition, bank charges of $18 incurred in September were entered in the cash book.
What was the balance of the bank column in the cash book on 1 November 2024?
$98 credit
$98 debit
$162 credit
$162 debit
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71 mark
Hwan settled the account of Tae, one of his credit suppliers. Hwan made the following entries on the credit side of his cash book.
discount $ | cash $ | bank $ | |
Tae | 8 | 152 |
Which entries did Hwan make on the debit side of Tae's account?
$ | ||
|---|---|---|
A | bank | 152 |
B | bank | 160 |
C | bank discount allowed | 152 8 |
D | bank discount received | 152 8 |
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