EXERCISES A contra entry B imprest system C prudent Dconservatism 4 period vehicle D utility bills the following questions. A petty cash float is maintained to pay for C down payment of the business motor The month petty cash float of a business is 4 Debiting the petty cash book with the exact small amount of expenditure for a given B the monthly salary of a cashier RM1,000. Wat is the amount to be reimbursed at the end of the month if total payment for the 3 The following is a summary of Adam Cafe's petty cash transactions for a week: Income RM Opening balance 600 Sale of stamps 20 Sale of paper 60 Expenditure RM Travelling expenses 200 Subsistence expenses 180 Petty cash is maintained using the imprest system. What sum should be reclaimed by the cashier at the end of the week? A RM380 C RM600 B RM300 D RM200 month was M750? A RM350 B RM1.750 CRM750 DRM1,000 5 An analytical petty cash book A is used instead of three-column cash book. B is not part of the double-entry system. Clists different petty expenses under their relevant headings D is always run on the imprest system. 6 Under the imprest system, the cash is A increased every week. B reduced every week. C used up completely before being restored. Dalways restored to the original amount. 7 Which of the following statements is incorrect? A The petty cash book records cash received and paid. B The petty cash book is written up using petty cash receipts and petty cash vouchers. C The petty cash book is a book of prime entry DThe petty cash book records cheques received and paid. 8 Aminah Mart does not operate an imprest system. The secretary informs you that at the beginning of the month, there was RM10 cash in the cash box. She also informs you that she took out the following sums from the cash register on the following dates: 5/3/20x8 RM30 16/3/20x8 RM50 21/3/20x8 RM20 23/3/20x8 RM100 amount spent in the previous period is an example of 9 The closing balance of the petty cash book is 272 Fundamentals of Financial Accounting During the same month, the secretary paid for the following items: considered as Purchased coffee RM8 A expense B income Payment for travel expenses RM35 Casset Payment for sundry stationeries RM18 D liability Payment for sugar, cream and milk RM28 10 Which of the following explains the imprest Payment for stamps and envelopes RM36 system of operating petty cash? Payments for biscuits RM12 A Daily expenditure cannot exceed a certain Payment for laundry of praying mats RM58 amount. She also put back RM10 into the cash register B The exact amount of expenditures on 25/3/20x8 in change as the cashier required reimbursed at certain intervals to maintain RM5 notes and she had some in petty cash. a fixed float. How much is in petty cash at the end of the C All expenditure out of the petty cash must month? have proper authorisation. A RM20 CRM15 D Frequent equal amounts of cash are B RM5 D None of the above transferred into petty cash at intervals