The cash book and petty cash
The cash book records money in and out of the bank. Petty cash is a small float of notes and coins for small costs.
In this room: 2 tasks, 8 questions
- The cash book4 questions
- Petty cash4 questions
The cash book records every receipt into the bank and every payment out of it.
It is a book of prime entry and part of the double entry at the same time: the cash book is the Bank account.
Receipts are on the debit side. Payments are on the credit side.
| Date | Details | Receipts | Payments |
|---|---|---|---|
| 1 Oct | Balance b/d | 1,960.00 | |
| 4 Oct | Rent | 240.00 | |
| 6 Oct | Corner Café | 370.00 | |
| 15 Oct | Flour supplier | 420.00 | |
| 30 Oct | Electricity, cheque 214 | 95.00 | |
| 31 Oct | Park Hotel | 480.00 |
Answer the questions below
3 more questions follow in this task.
Petty cash is a small amount of notes and coins kept for small costs, such as stamps or milk.
It runs on the imprest system. The float starts at a fixed amount. At the end of the period it is topped back up to that amount.
The top-up always equals what was spent.
Answer the questions below
3 more questions follow in this task.