Amanda maintains a petty cash book using the imprest system. The imprest amount of $200 is restored on the first day of each month. On 1 January 2020 Amara had a balance of $65 in her petty cash.
All payments of less than $300 are made from petty cash.
On 1 January 2020, Amara owed $86 to Razvan, a credit supplier.
Amara provided the following information for January 2020.
January 1 The petty cash imprest was restored from the business bank account.
3 Purchased stationery for cash, $34
7 Paid travelling expenses, $59
14 Paid Razvan the amount outstanding on his account
19 Purchased goods on credit from Razvan, $300 less 10% trade discount
22 Paid taxi fare, $28
28 Returned goods to Razvan which had been purchased on 19 January, list price
$30
29 Paid postage, $21
REQUIRED
(a) Prepare Amanda’s petty cash book for the month of January 2020, on the page opposite.
Balance the petty cash book and bring down the balance on 1 February 2020.

(b) Prepare the account of Amanda as it would appear in the ledger of Razvan. Balance the account and bring down the balance on 1 February 2020.

(c) State two other methods which Amanda could use to pay Razvan from her bank account.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a Here is Amandas petty cash book fo... View the full answer