Question 9 of 45intermediate🔧 ApplyNumerical4 marks

Record the following transactions during the week ending Dec.30, 2014 with a weekly imprest ₹500. 2017 January 24 Stationery 100 25 Bus fare 12 25 Cartage 40 26 Taxi fare 80 27 Wages to casual labour 90 29 Postage 80

Correct Answer

Petty Cash Book

Amount ReceivedDateParticularsVoucher No.Amount PaidStationeryConveyanceCartageWagesPostage
5002017Cash Received (Imprest)
Jan 24Stationery100100
Jan 25Bus fare1212
Jan 25Cartage4040
Jan 26Taxi fare8080
Jan 27Wages to casual labour9090
Jan 29Postage8080
Total40210092409080
Balance c/d98
500
Jan 30Balance b/d98

Calculations:

  1. Total Payments (Expenses): 100 (Stationery) + 12 (Bus fare) + 40 (Cartage) + 80 (Taxi fare) + 90 (Wages) + 80 (Postage) = ₹402.
  2. Balance: Imprest Amount (₹500) - Total Payments (₹402) = ₹98.
Exercise: Numerical Questions | Q: 12
For More Understanding

Explanation

The question asks to record transactions in a Petty Cash Book under the Imprest System. The Imprest amount is ₹500. The transactions listed (Stationery, Bus fare, Cartage, Taxi fare, Wages, Postage) are typical petty expenses. Although the header mentions 'Dec.30, 2014', the transaction dates are explicitly listed under '2017 January'. We follow the specific transaction dates provided. The total of these expenses is ₹402. The remaining cash balance is calculated by subtracting the total expenses from the imprest amount (500 - 402), resulting in ₹98, which matches the answer key provided in the context.

Solution Steps

  1. Step 1: Identify the Imprest Amount: ₹500.

  2. Step 2: Sum the amounts for each transaction to find Total Payments: 100 + 12 + 40 + 80 + 90 + 80 = ₹402.

  3. Step 3: Calculate the Petty Cash Balance: Imprest Amount - Total Payments = 500 - 402 = ₹98.

  4. Step 4: Record the details in the Analytical Petty Cash Book format, categorizing expenses into columns (Stationery, Conveyance, etc.).