| Earlier article on imprest petty cash system refers. Below is a very simple worked question and answer for the reader to enhance the understanding of imprest petty cash system.
Question: ABC Enterprise has the following petty cash transaction for the month of January 2012:-
(a) Determine the receipt of the amount necessary to restore the imprest and carry down the balance for the following month (b) Give the double entry journal for the various petty cash expenditure. Suggested answer: (a) The top up to restore the imprest cash float is the reimbursement of all the actual expenditure namely :- ( Cleaning$60+Travelling$35+Postage$25+Cleaning$40+Stationery$20+ Travelling$45 = $225 ) (b) When a petty cash book with analysis columns for expenditure, the total for each individual column are: Cleaning $100 ($60 + $40) Travelling $80 ($35+$45) Postage $25 Stationery $20 The journal for the double entry for the aforesaid expenditures:-
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