Preparation of a Petty Cash Book

Record the following in the petty cashbook of Mr A. Ajayi, showing analysis columns for postage, stationery, travelling expenses, carriage and sundry expenses.

		₦ : K
Aug 1	Petty cash balance at hand	120 000.00
Aug 3	Paid bus fare	2 250.00
Aug 7	Paid postage	3 100.00
Aug 9	Bought ink	4 500.00
Aug 11	Paid postage	500.00
Aug 17	Paid bus fare	4 000.00
Aug 22	Paid window cleaner	4 000.00
Aug 24	Office cleaner’s wages	10 000.00
Aug 30	Paid bus fare	4 200.00

Show the balance at hand as at 30 August.

Solution:

The balance at hand as at Aug 30 is ₦87 450.00

Explanation:

1. The cash received column records the ₦120 000.00 on the debit side.

2. The cash book folio column shows that the cash given has been recorded in the cash book.

3. The date column shows the date of each expenditure.

4. The particulars column shows the details of each expenditure.

5. The voucher number shows the source of each expenditure.

6. The total column shows the sum total of every expenditure made.

7. The postage column shows all expenditures made under it.

8. The stationery column shows all expenditures made under it.

9. The travelling expenses column shows all expenditures made under it.

10. The cleaning expenses column shows all expenditures made under it.

11. The amount spent out of the ₦120 000.00 is ₦32 550.00, leaving behind a balance of ₦87 450.00. Therefore on Sept. 1, The main cashier will reimburse the petty cashier ₦32 550.00.

This amount is to be added to the balance of ₦87 450.00 to restore the imprest.

12. The main cashier reimbursed the petty cashier by cheque so bank a/c was entered in the particulars column, if the main cashier reimbursed the petty cashier with cash, then cash would have been entered instead.