Professional Documents
Culture Documents
Practice Questions
1 Which of the following are books of prime entry?
A 1 and 2 only
B 1, 2 and 3 only
C 1 only
D All of them
2 In which book of prime entry will a business record debit notes in respect of goods
which have been sent back to suppliers?
A Discounts received
B Sales invoices
D Trade discounts
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5 How is the total of the purchases day book posted to the nominal ledger?
6 How is the total of the sales day book recorded in the nominal ledger?
Debit Credit
A Receivables Ledger Receivables Control Account
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Non-imprest system
In a non-imprest system, a fixed amount is topped up:
Ø every month, for example, or
Ø whenever the petty cash has all been disbursed
Imprest system
Ø Under the imprest system, the petty cash (real cash) is kept in the safe or cash tin at
an agreed sum (Float/Imprest amounts). Pre-set limit, say $2,000.
Ø A petty cash voucher is filled in when money is taken out to pay an expense
Ø At any point in time: real cash + petty cash vouchers + IOU = pre-set limit
(Float/Imprest amounts).
Ø At the end of the week/month, the petty cash book is recorded from the vouchers
Ø At the end of each week, for example, the cash tin is reimbursed (topped up) that is
equal to the amount paid out (voucher amounts) during the week.
7 Which one of the following provides evidence that an item of expenditure on petty
cash has been approved or authorized?
8 Which one of the following statements about an imprest system of petty cash is
correct?
A An imprest system for petty cash controls small cash expenditures because a
fixed amount is paid into petty cash at the beginning of each period.
B The imprest system provides a control over petty cash spending because the
amount of cash held in petty cash at any time must be equal to the value of
the petty cash vouchers for the period.
C An imprest system for petty cash can operate without the need for petty cash
vouchers or receipts for spending.
D An imprest system for petty cash helps with management of small cash
expenditures and reduces the risk of fraud.
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9 Which one of the following explains the imprest system of operating petty cash?
D Regular equal amounts of cash are transferred into petty cash at intervals
10 Which one of the following states the entries required to account for a reimbursement
to the petty cash float of $125 from the bank account?
11 The petty cash balance at 30 November 20X9 was $25. The following transactions
occurred during November 20X9:
A $25
B $60
C $35
D $50
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12 Simran uses the imprest method of accounting for petty cash. She counted the
petty cash and there was $66·00 in hand. There were also the following petty cash
vouchers:
$
Sundry purchases 22.00
Loan to sales manager 10.00
Purchase of staff drinks 19.00
Sundry sales receipts 47.00
13 Ignatius operates the imprest system for petty cash. At 1 July there was a float of $150,
but it was decided to increase this to $200 from 31 July onwards. During July, the petty
cashier received $25 from staff for using the photocopier and a cheque for $90 was
cashed for an employee. In July, cheques were drawn for $500 for petty cash.
How much cash was paid out as cash expenses by the petty cashier in July?
14 Petty cash is controlled under an imprest system. The imprest amount is $100.
During a period, payments totalling $53 have been made.
How much needs to be reimbursed at the end of the period to restore petty
cash to the imprest account?
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