(a) Why do some businesses keep a petty cash book as well as a cash book?

(b) Kathryn Rochford keeps her petty cash book on the imprest system, the imprest being £25.

For the month of April 19X9 her petty cash transactions were as follows:

(i) Enter the above transactions in the petty cash book and balance the petty cash book at 30 April, bringing down the balance on 1 May.
(ii) On 1 May Kathryn Rochford received an amount of cash from the cashier to restore the imprest. Enter this transaction in the petty cash book.

(c) Open the ledger accounts to complete the double entry for the following:
(i) The petty cash analysis columns headed Postage and Stationery and Travelling Expenses;
(ii) The transactions dated 9 and 23 April 19X9.

Transcribed Image Text:

Apr 1 Petty cash balance 1.13 93 2 Petty cashier presented vouchers to cashier and obtained cash to restore the imprest 23.87 4 Bought postage stamps 8.50 " 39 9 Paid to Courtney Bishop, a creditor 11 Paid bus fares 17 Bought envelopes 2.35 1.72 0.70 97 23 Received cash for personal telephone call 0.68 55 26 Bought petrol 10.00