Petty Cash Book

The imprest system is a form of financial accounting system. The most common imprest system is the petty
cash system. The base characteristic of an imprest system is that a fixed amount is reserved, which after a
certain period of time or when circumstances require, because money was spent, it will be replenished.

The advantages of using the Imprest system are versatility, accountability, practicality, limitation of theft, ease
of use and limitation of expenditure. The system is a form of managing petty cash in a business. Using Imprest,
the petty cash of a company is kept at a constant rate.

Reasons (advantages) for maintaining Petty Cashbook

 Reduce the number of entries in the main cash book
 Removes the small cash payments from the main cash book
 Reduces the number of entries in the ledger
 Allows the chief cashier to delegate some of the work
 Provides training for junior staff members

State why the bank statement balance is on the opposite side to that shown in the cash book.

The bank statement is a copy of the account of the business as it appears in the books of the bank / the bank
statement is prepared from the viewpoint of the bank (1)

The bank account in the cash book is prepared from the viewpoint of the business (1)

State why it is not possible to have a credit balance in the cash column of cash book.

It is not possible to take out more cash than is in the cash box

Reasons for preparing a bank reconciliation statement.

 Obtain the correct bank balance

 Identify errors in the bank account
 Identify errors on the bank statement
 Assist in discovering fraud and embezzlement
 Identify cheques not credited by the bank
 Identify cheques not presented
 Identify any stale cheques
 Understand/reconcile the differences between cash book and bank statement

Accounting: Petty cash book Page 1 of 21

J11/12/ (11/13 same)
2(d) Explain what is meant by the imprest system of petty cash.

…………………………………………………………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………………………………………………[2]
J12/12
2(f) Simone keeps her petty cash on the imprest system with an imprest of $120.
On 30 April she had vouchers in the petty cash box for expenses of $87.60.

(i) What was the amount of petty cash remaining at 30 April?

……………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………..[1]

(ii) How much cash was required to restore the imprest at 1 May?

……………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………..[1]

J12/13
4 Theba maintains a petty cash book using the imprest system.

REQUIRED
(a) State one reason why Theba maintains a petty cash book in addition to her main cash book.

………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………….[2]
(b) Explain what is meant by the imprest system of petty cash.

……………………………………………………………………………………………………………………………………………………..
……………………………………………………………………………………………………………………………………………………..
……………………………………………………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………………………………………[2]

Accounting: Petty cash book Page 2 of 21

 Theba’s imprest amount is $200.

On 1 April 2012 she had $97 in the petty cash box. On the same day she made a transfer from the
business bank account to restore the petty cash to the imprest amount.

On 30 April 2012 Theba had the following petty cash vouchers.

$
April 4 Postage stamps 24
12 Stationery 36
17 Fuel for motor vehicle 38
21 Refund from stationery supplier 4
24 Catering supplies 12
29 Cleaning 70

REQUIRED
(c) Prepare Theba’s petty cash book for the month of April 2012. Balance the book on 30 April
2012 and carry down the balance. Make the entry on 1 May 2012 to restore the petty cash
to the imprest amount.
Theba – Petty Cash Book
Postages
Total Total Catering Motor
Date Details Cleaning &
Received paid supplies expenses
Stationery
$ 2012 $ $ $ $ $
Apr. Balance b/d

[12]

(d) From the entries in the petty cash book, record the transactions for the month in Theba’s ledger.
Postage and Stationery account
Date Details $ Date Details $

Accounting: Petty cash book Page 3 of 21

 Motor expenses account
Date Details $ Date Details $

Catering supplies account

Date Details $ Date Details $

Cleaning account
Date Details $ Date Details $

[5]
(e) State the amount of petty cash which would be included in Theba’s statement of financial
position prepared on 30 April 2012.

…………………………………………………………………………………………………………………………………………………[1]
[Total: 22]

N12/12
2(f) Mubara keeps his petty cash book on the imprest system with an imprest amount of $120. At
31 October there were vouchers for petty cash expenditure totalling $74.50 in the petty cash box.
He had not claimed for a train fare of $17.50.

State the amount which will remain in the petty cash box after he has claimed his train fare.

……………………………………………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………………………………………….[1]

Accounting: Petty cash book Page 4 of 21

J13/21
1 Annie Rongsen maintains both a three column cash book and a petty cash book. She maintains the petty
cash book on the imprest system with an imprest amount of $90.
She supplied the following information for the month ending 31 March 2013.
$
March 1 Petty cash balance 23
Petty cash restored to imprest amount ?
4 Paid postage 19
8 Paid taxi fares 16
13 An employee returned a loan paid out of petty cash in February 20
19 Paid parcel post 4
23 Paid R Singh, a credit supplier 24
29 Paid window cleaner 12
(a) State two reasons for maintaining a petty cash book in addition to a main cash book.
1…………………………………………………………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………………………………………………….
2…………………………………………………………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………………………………………………[2]
(b) State one advantage of using the imprest system of petty cash.
…………………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………………[1]

(c) Enter the above transactions in Annie Rongsen’s petty cash book. Balance the book on 31 March 2013
and carry down the balance. Make the entry on 1 April 2013 to restore the petty cash to the imprest
amount.
Annie Rongsen – Petty Cash Book
Total Total Ledger
Date Details Postage Travel Sundries
Received Paid Accounts
$ 2013 $ $ $ $ $
23 Mar. 1 Balance b/d
1
4
8
13
19
23
29

[12]

Accounting: Petty cash book Page 5 of 21

(d) Explain how the double entry will be completed for the items shown in the postage column of the
petty cash book.

…………………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………………[2]

At the end of each month Annie Rongsen reconciles the bank columns in her main cash book with the
statement received from the bank.

(e) Suggest two items which may appear in the cash book but not on the bank statement.

1 ………………………………………………………………………………………………………………………………………………………..
2 …………………………………………………………………………………………………………………………………………………….[2]

(f) Suggest two items which may appear on the bank statement but not in the cash book.

1 ………………………………………………………………………………………………………………………………………………………..
2 …………………………………………………………………………………………………………………………………………………….[2]
[Total: 21]

Accounting: Petty cash book Page 6 of 21

N13/22
1 Saira Rehman maintains a petty cash book using the imprest system. Her imprest amount is $200.

On 1 October 2013 she had $56 in the petty cash box.

Saira Rehman’s transactions for the month of October 2013 were as follows:
$
October 1 Restored petty cash to imprest amount ?
4 Bought stamps and stationery 19
10 Received cash from employee for personal postage costs 3
14 Paid Abdul Shakeel, a credit supplier 34
18 Bought tea and coffee 9
23 Paid Syed Arshad, a credit supplier 16
28 Paid cleaners 80

(a) Enter the above transactions in Saira Rehman’s petty cash book. Balance the petty cash book at
31 October 2013 and carry down the balance.

Make the entry on 1 November 2013 to restore the petty cash to the imprest amount.

Saira Rehman – Petty Cash Book

Total Total Postage & Catering Ledger
Date Details Cleaning
Received Paid stationery supplies Accounts
$ $ $ $ $ $

[12]

Accounting: Petty cash book Page 7 of 21

 (b) State where the double entry would be completed for the items recorded in the ledger account
column of Saira Rehman’s petty cash book.

…………………………………………………………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………………………………………………[2]

(c) State where the double entry would be completed for the transaction on 10 October.

…………………………………………………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………………………………………………[2]

N14/23
1 Peter Pickard maintains a petty cash book. The monthly imprest of $250 is restored on the last day of the
month.
REQUIRED
(a) State two reasons for maintaining a petty cash book.

1 ……………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………..
2 ……………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………[2]

(b) Explain the imprest system of petty cash.

……..……………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………………………………………………[2]

(c) State one advantage of the imprest system of petty cash.

…………………………………………………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………………………………………………[1]

Accounting: Petty cash book Page 8 of 21

 The entries in Peter Pickard’s petty cash book for August 2014 were as follows.

Peter Pickard
Petty Cash Book
Total Total Ledger
Date Details Postage Cleaning Sundries
Received Paid Accounts
$ 2014 $ $ $ $ $
250 Aug. 1 Balance b/d
4 Window cleaner 25 25
10 Stamps 30 30
16 B Smith 36 36
21 Donation to charity 15 15
29 Office cleaner 83 83
31 W Jones 18 18

REQUIRED
(d) Calculate how much the petty cashier will receive on 31 August 2014 to restore the imprest.

…………………………………………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………………………………………..[1]

(e) Complete the following table to show the double entry to restore the imprest on 31 August 2014.

Debit Credit

[2]

(f) State how the double entry is completed on 31 August 2014 for the items recorded in the cleaning
column of the petty cash book.

…………………………………………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………………………………………..[1]

(g) State how the double entry is completed on 31 August 2014 for the items recorded in the ledger
accounts column of the petty cash book.

…………………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………………………………………..[2]

Accounting: Petty cash book Page 9 of 21

Additional Information

Peter Pickard’s transactions for August 2014 included the following.

Aug. 5 Sold goods on credit to S Bower, list price $1480, less 20% trade discount
13 Sold goods on credit to C Brooke, list price $1340, less 15% trade discount
19 S Bower returned goods, list price $160, purchased on 5 August

REQUIRED
(h) Make the necessary entries in Peter Pickard’s sales journal, sales returns journal, sales ledger and
nominal (general) ledger for the month of August 2014. It is not necessary to balance the accounts.

Peter Pickard
Sales Journal
Date Details $ $

[3]
Sales Returns Journal
Date Details $ $

[2]
Sales Ledger
S Bower account
Date Details $ Date Details $

[2]
C Brooke account
Date Details $ Date Details $

[1]

Accounting: Petty cash book Page 10 of 21

 Nominal (General) Ledger
Sales account
Date Details $ Date Details $

[1]
Sales Returns account
Date Details $ Date Details $

[1]

Accounting: Petty cash book Page 11 of 21

J15/23
1 Kuda Maposa maintains a petty cash book using the imprest system.

REQUIRED
(a) State one advantage of the imprest system of petty cash.

……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………….[1]

On 1 March 2015 the balance of Kuda Maposa’s petty cash book was $100 which was equal to the amount
of the imprest.

Her transactions for the month of March 2015 were as follows.

$
March 6 Paid for postage costs 13
11 Bought tea and coffee 5
14 Purchased stationery 27
18 Paid T Masuka, a credit supplier 15
21 Received refund for damaged stationery 10
26 Paid window cleaner 12
29 Paid P Zhonga, a credit supplier 16

REQUIRED
(b) Enter these transactions in Kuda Maposa’s petty cash book. Balance the petty cash book and bring
down the balance on 1 April 2015.

Total Total General Ledger

Date Details Postages Stationery
Received Paid expenses accounts
$ 2015 $ $ $ $

[11]
Accounting: Petty cash book Page 12 of 21
 (c)(i) State the amount required to restore the imprest on 1 April 2015.

…………………………………………………………………………………………………………………………………………………[1]

(ii) Name the account which would be credited with this amount.

………………………………………………………………………………………………………………………………………………..[1]

(d) Name the ledger account in which the transaction of 21 March would be recorded.

……………………………………………………………………………………………………………………………………………………….[1]

J16/22
1 Carol is a trader. She maintains a three column cash book and also a petty cash book. The imprest amount
is $100. All payments below $50 are made from petty cash.
REQUIRED
(a) State two reasons for maintaining a petty cash book.

1 ................................................................................................................................................
...................................................................................................................................................
2 ................................................................................................................................................
.............................................................................................................................................. [2]

Carol had the following transactions during April 2016.

April 1 Petty cash imprest restored from the business bank account.
4 Purchased tea and coffee for office staff, $11.
9 Paid K Mzolo’s account of $450, by cheque, after deducting a cash discount of 2%.
16 Bought stationery, $25.
19 Paid taxi fare, $8.
20 Received a cheque from B Mamba in settlement of his account of $920, less 2½% cash discount.
23 Paid T Nhete, a credit supplier, $38.
28 Cash sales, $2 970.
29 Paid all the cash in the main cash account, except $100, into the bank account.
REQUIRED
(b) Record the above transactions in the following books. Balance each book and bring down the balances
on 1 May 2016. [9]

Accounting: Petty cash book Page 13 of 21

 Carol
(i) Petty cash book
Total Total Postages & General Ledger
Date Details
Received Paid Stationery expenses accounts
$ 2016 $ $ $ $
23 Apr. 1 Balance b/d

Carol
(ii) Cash book
Date Details Discount Cash Bank Date Details Discount Cash Bank
allowed received
2016 $ $ $ 2016 $ $ $
Apr.1 Balance b/d 210 Apr.1 Balance b/d 1 437

[10][Total: 21]

Accounting: Petty cash book Page 14 of 21

N17/22
1 Saffie is a trader. She maintains a three column cash book and also a petty cash book. The imprest amount
is $150. All payments below $100 are made from petty cash.
Saffie had the following transactions in September 2017.
September 1 Petty cash imprest restored from the business bank account
3 Paid taxi fare, $12
7 Paid $461 by cheque for repairs to office machinery
11 Purchased office stationery, $64
15 A cheque for $210 received from SL Stores in August was dishonoured by the bank
21 Paid Faariqa, a credit supplier, $29
26 Received a cheque from Thushari, $392, in settlement of the amount due less 2% cash
discount
28 Cash sales, $4840, of which $4800 was immediately paid into the bank
29 Paid Sopitha’s account of $480 after deducting a cash discount of 2½%
30 Paid postage, $22
REQUIRED
(a) Record the above transactions in the following books. Balance each book and bring down the
balances on 1 October 2017.

(i) Saffie
Petty cash book
Postages
Total Total Ledger
Date Details Travel &
Received paid accounts
Stationery
$ 2017 $ $ $ $
63 Sept.1 Balance b/d

[9]

Accounting: Petty cash book Page 15 of 21

 (ii) Saffie
Cash book
Date Details Discount Cash Bank Date Details Discount Cash Bank
allowed received
2017 $ $ $ 2017 $ $ $
Sept.1 Balance b/d 120 Sept.1 Balance b/d 3 841

[10]

N18/21
2 Sara maintains a petty cash book. The monthly imprest of $120 is restored on the first day of each month.
The entries in Sara’s petty cash book for July 2018 were as follows.
Sara
Petty Cash Book
Total Total Ledger
Date Details Cleaning Postages Sundries
Received paid Accounts
$ 2018 $ $ $ $ $
42 July 1 Balance b/d
78 Cash
4 Stamps 4 4
13 Parcel post 25 25
19 Cleaning materials 55 55
23 Sabeena (credit supplier) 19 19
29 Sundry expenses 6 6
Refund for faulty cleaning
5 30
materials

REQUIRED
(a) State one advantage to Sara of maintaining a petty cash book.

................................................................................................................................................................
…………................................................................................................................................................ [1]

Accounting: Petty cash book Page 16 of 21

 (b) Show the entries which would be made in the cleaning account in July 2018. It is not necessary to
close or balance the account.
Sara
Cleaning account
Date Details $ Date Details $

[2]
(c) State how the double entry is completed for the item recorded in the ledger accounts column of the
petty cash book.
……………...................................................................................................................................................
............................................................................................................................................................ [2]

(d) State the double entry for restoring the imprest on 1 August 2018.

Debit Credit
$ $

[3]
J14/11
5 Miguel also maintains a petty cash book with an imprest amount of $100 which is restored at the start
of each month. On 31 March the total of vouchers in the petty cash book was $66.

REQUIRED
(d) Calculate the amount the chief cashier gave to the petty cashier on 1 April.

…………………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………….[1]
N17/22
1 Saffie is a trader. She maintains a three column cash book and also a petty cash book. The imprest amount
is $150. All payments below $100 are made from petty cash.

Saffie had the following transactions in September 2017.

September 1 Petty cash imprest restored from the business bank account
3 Paid taxi fare, $12
7 Paid $461 by cheque for repairs to office machinery
11 Purchased office stationery, $64
15 A cheque for $210 received from SL Stores in August was dishonoured by the bank
21 Paid Faariqa, a credit supplier, $29
26 Received a cheque from Thushari, $392, in settlement of the amount due less 2% cash
discount
28 Cash sales, $4 840, of which $4 800 was immediately paid into the bank
29 Paid Sopitha’s account of $480 after deducting a cash discount of 2½%
30 Paid postage, $22

Accounting: Petty cash book Page 17 of 21

 REQUIRED
(a) Record the above transactions in the following books. Balance each book and bring down the
balances on 1 October 2017.

(i) Saffie
Petty cash book
Postages
Total Total Ledger
Date Details Travel &
Received paid accounts
Stationery
$ 2017 $ $ $ $
63 Sept.1 Balance b/d

[9]
(ii) Saffie
Cash book
Date Details Discount Cash Bank Date Details Discount Cash Bank
allowed received
2017 $ $ $ 2017 $ $ $
Sept.1 Balance b/d 120 Sept.1 Balance b/d 3 841

[10]

Accounting: Petty cash book Page 18 of 21

J18/11
3 Amira owns an advertising agency. Her financial year ends on 30 April.
On 1 April 2018 she decided to use a petty cash book with a monthly imprest of $80 which would be
restored on the first day of each month.
REQUIRED
(a) State one reason for using a petty cash book.
...................................................................................................................................................
...............................................................................................................................................[1]

(b) State one advantage of the imprest system of petty cash.

...................................................................................................................................................
...............................................................................................................................................[1]

On 1 April 2018 Amira put $80 cash in the petty cash box.
Her transactions for the month of April 2018 were as follows.
$
April 4 Bought stamps 3
7 Purchased printing paper 8
11 Purchased ink cartridges 12
19 Paid window cleaner 10
22 Paid KK Limited, a trade payable 35
29 Purchased flowers for reception desk 7
REQUIRED
(c) Enter these transactions in Amira’s petty cash book on the page opposite. Balance the petty cash
book and bring down the balance on 1 May 2018. [10]
Amira
Petty Cash Book
Total Total Computer General Ledger
Date Details Postage
Received paid supplies expenses accounts
$ 2018 $ $ $ $ $
80 Apr. 1 Balance b/d

Accounting: Petty cash book Page 19 of 21

 (d) Complete the following table to show the double entry to restore the petty cash imprest on 1 May
2018.

Debit $ Credit $

[3]

(e) Show the entry which would be made in the computer supplies account in April 2018. It is not
necessary to close or balance the account.

Amira
Computer supplies account
Date Details $ Date Details $

[1]
J19/12
4 Sam’s book-keeper started to maintain a petty cash book on 1 April 2019. On that date $150 was placed
in the petty cash box. This was to be the monthly imprest which was to be restored on the first day of
each month.

At the end of April 2019 Sam discovered that only a few entries had been made in the petty cash book
for the month.

The following information about the petty cash transactions for April 2019 is available.

2019 $
April 11 Received refund from cleaner for overpayment in March 5
18 Paid Kelly, a credit supplier 35
21 Bought printer paper 23
30 Paid cleaner 56

REQUIRED
(e) Complete the entries for the transactions on 3 April and 6 April in the petty cash book.
Enter the transactions for 11 April to 30 April in the petty cash book.
Balance the petty cash book on 30 April and bring down the balance on 1 May 2019.
Show the restoration of the imprest on 1 May 2019.

Accounting: Petty cash book Page 20 of 21

 Sam – Petty Cash Book
Total Total Office Ledger
Date Details Travel Cleaning
Received paid Expenses accounts
$ 2012 $ $ $ $ $
150 April 1 Cash
3 Taxi fare 12
6 Parcel post 3

[10]

Accounting: Petty cash book Page 21 of 21