CIE Accounting Paper-2: Specimen Questions with Answers 81 - 82 of 103

Passage

Royal cosmetics have the following cash transactions during the month of January 2016.

Find out amount of Royal cosmetics have the following cash transactions

Royal cosmetics have the following cash transactions during the month of January 2016.

Date

Particulars

Amount

Date

Particulars

Amount

1

Opening balance (imprest System)

1000

9

Cartage

100

2

Stamps

120

10

travelling expenses

250

3

Wages for cleaner

150

11

Courier sent

150

4

Taxi fare

160

12

Entertainment of salesman

200

5

Office tea

150

13

Repair of cycle

100

6

Repairs of cycle

100

14

Printing

50

7

Advertisement

300

15

Stationery

30

8

Drew imprest from head cashier

16

Drew imprest from head cashier

Question number: 81 (3 of 5 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

What do Royal cosmetics mean by the term imprest in their cash book?

Explanation

Imprest is a system of maintaining petty cash. Under this system the “imprest” amount also known as “float” amount, is the amount which the petty cashier gets as reimbursement from the head cashier at regular intervals of time. Hence the petty cashier under this system always has the same amount at regular intervals to carry out the company’s expenses.

Question number: 82 (4 of 5 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

What would be the imprest amount drawn by the cashier from the head cashier on 16th January 2016?

Explanation

The cashier withdraws an amount of £880 from the head cashier on 16th January 2016.

SOLUTION:

Petty cash book of Royal cosmetics for the month of January 2016

Table of Petty cash book of Royal cosmetics for the month of January 2016

Date

Particulars

Total

Date

Particulars

Postage

Repairs

Travelling expenses

Cartage

Printing & stationery

Misc. Expenses

Total

1

To balance b/d

1000

2

Stamps

120

120

3

Wages for cleaner

150

150

4

Taxi fare

160

160

5

Office tea

150

150

6

Repairs of cycle

100

100

7

Advertisement

300

300

8

Balance c/d

20

1000

120

100

160

-

-

600

1000

8

To balance b/d

20

9

Cartage

100

100

To cash from head cashier

980

10

travelling expenses

250

250

11

Courier sent

150

150

12

Entertainment of salesman

200

200

13

Repair of cycle

100

100

14

Printing

50

50

15

Stationery

30

30

16

Balance c/d

120

1000

150

100

250

100

80

200

1000

16

To balance b/d

120

To cash from head cashier

880