IGCSE Accounting Paper-2: Specimen Questions with Answers 81 - 83 of 189

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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
DateParticularsAmountDateParticularsAmount
1Opening balance (imprest System)10009Cartage100
2Stamps12010travelling expenses250
3Wages for cleaner15011Courier sent150
4Taxi fare16012Entertainment of salesman200
5Office tea15013Repair of cycle100
6Repairs of cycle10014Printing50
7Advertisement30015Stationery30
8Drew imprest from head cashier16Drew imprest from head cashier

Question 81 (3 of 5 Based on Passage)

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Short Answer▾

State any two differences between the main cash book and the petty cash book?

Explanation

The two differences between petty cash book and main cash book are as follows:

(i) In the main cash book all the cash receipts are recorded, but in the petty cash book only the amount received from the head cashier are recorded.

(ii) All expenses except petty cash expenses are recorded in the main cash book. All petty expenses are recorded in the petty cash book.

Question 82 (4 of 5 Based on Passage)

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Short Answer▾

What are the advantages that Royal cosmetics enjoy by maintaining their cash transactions under this system?

Explanation

Royal cosmetics can enjoy the following advantages by maintaining its book under the imprest system of petty cash:

(i) There exists a control over mistakes and frauds.

(ii) There exists a control over petty expenses.

Question 83 (5 of 5 Based on Passage)

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Short Answer▾

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
DateParticularsTotalDateParticularsPostageRepairsTravelling expensesCartagePrinting & stationeryMisc. ExpensesTotal
1To balance b/d10002Stamps120120
3Wages for cleaner150150
4Taxi fare160160
5Office tea150150
6Repairs of cycle100100
7Advertisement300300
8Balance c/d20
1000120100160--6001000
8To balance b/d209Cartage100100
To cash from head cashier98010travelling expenses250250
11Courier sent150150
12Entertainment of salesman200200
13Repair of cycle100100
14Printing5050
15Stationery3030
16Balance c/d120
1000150100250100802001000
16To balance b/d120
To cash from head cashier880

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