Page 107 - DMGT104_FINANCIAL_ACCOUNTING

Unit 6: Subsidiary Books

Solution: Notes
Three Columns Cash Book
Dr. Cr.
Date Particulars L.F. Discount Cash Bank Date Particulars L.F. Discount Cash Bank
( ) ( ) ( ) ( ) ( ) ( )
2009 2009
Oct. 1 To Balance b/d 100 3,500 Oct. 5 By Salaries A/c – 250
Oct. 9 To B & Co. – 2,500 Oct. 7 By K & Co. – 260
Oct. 15 To S. Chand 1,500 – Oct. 12 By Purchase A/c – 750
Oct. 17 To Cash A/c (C) – 1450 Oct. 17 By Bank A/c (C) 1450 –
Oct. 19 To Debitors 1,780 – Oct. 18 By S. Creditors – 1250

A/c 2,500 – Oct. 20 By B & Co – 2,500
Oct. 22
To B & Co. 30 470 Oct. 27 By Shyam Lal 5 395
Oct. 24
To R & Co. (C) 2,200 Oct. 31 By Bank A/c (C) 2,200
Oct. 31
To Cash A/c By Balance c/d 4,885 5,110
30 5,880 10,120 5 5,880 10,120

6.2.4 Petty Cash Book
The Petty Cash Book records all the transactions which are very small in terms of money. In such
situation, a fixed amount of cash in the beginning of the month is given to a person who is
known as petty cashier. After a fixed period say a week or month, he is again reimbursed or paid
back the amount whatever he has spent at the end of week or period. Such a system is known as
imprest system.
Thus, this type of system (the Imprest System) is very useful. It contains one column to record
the receipt of cash to be taken from the head cashier and other column to record payments of
various counts. All such payments are to be totalled to know the total amount spent, so that
necessary accounts be debited. The following is the proforma of Petty Cash Book:
Analytical Petty Cash Book
Receipts Date Particulars Voucher Total Amount Printing & Cartage Postage Remarks
( ) No. ( ) Stationery

Example: Enter the following transactions in Analytical Petty Cash Book.

2009 ( )
Jan. 1 Received cheque from head cashier 100.00
Jan. 2 Paid for postage and telegram 15.00
Jan. 3 Stationery purchased 5.00
Jan. 14 Paid for cartage 8.00
Jan. 18 Paid for travelling 7.00
Jan. 27 Tea for guests 6.00
Jan. 29 Office cleaning charges 12.00
Jan. 30 Paid for carriage 4.00
Jan. 31 Telegram charges 8.00

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