Page 52 - DMGT403_ACCOUNTING_FOR_MANAGERS

2009
Oct. 1 Cash in hand 100
Oct. 1 Cash at bank 3,500
Oct. 5 Paid salary by cheque 250
Oct. 7 Paid to K.K. & Co. by cheque 260
Unit 3: Sub-division of Journals
Oct. 9 Received a cheque from B & Co. 2,500
Oct. 12 Bought goods for cash paid by cheque 750
Oct. 15 Received cash from M/s. S. Chand 1,500
Notes
Oct. 17 Deposited cash into bank 1,450
Oct. 18 Sundry creditors were paid by cheque 1,250
Oct. 19 Received from debtors by cheque which could not be sent to bank 1,780
Oct. 20 B & Co. cheque dishonoured 2,500
Oct. 22 B & Co. paid cash 2,500
Oct. 24 R & Co. issued a cheque for Rs. 470 in full satisfaction of his account for 500
Oct. 27 Shyam lal was paid Rs. 395 in full settlement of his A/c amounting to 400
Oct. 31 Deposited into the Bank 2,200

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

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 No. Total Amount Printing & Cartage Postage
(Rs.) ( ) Stationery

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

LOVELY PROFESSIONAL UNIVERSITY 47