Martin Battle runs a business and maintains a petty cash book using the imprest system. The cash float is £150. For June 2020 his petty cash transactions were as below:

Required:

(a) Write up the petty cash book for June 2020, showing the balance carried down at the end of the month.

(b) Explain why most businesses maintain a petty cash book as well as a cash book.

(c) Compared to the value of its other assets, the amount of petty cash held by a business is usually very small. However, the system for controlling petty cash is given a degree of care and attention that is out of proportion to the financial amounts involved. Why is this?

(d) Explain the advantages of using the imprest system to control petty cash.

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June 1 2 5 9 382383 13 18 22 30 Petty cash balance Petty cashier presented vouchers for May 2020 to the cashier, receiv- ing cash to restore the imprest Paid for postage stamps Paid for office coffee and biscuits Paid for taxi fares Paid for minor items of stationery Paid for cleaning materials Paid for herbal teabags for the office Paid for train fares Petty cashier presented vouchers for June 2020 to the cashier, receiving cash to restore the imprest 44 32.17 ? 17.57 11.48 18.00 22.16 14.38 9.95 38.75 ?