Subject: Accountancy
The petty cash fund is an amount that is maintained by government office for making payments of small expenditures like refreshment, newspapers, postal stamp, taxi fare etc. These types of expenditures occur in government offices frequently. For making payment of such small amount of expenditures in cash, a fund is created by the office, which is known as petty cash fund. All the petty expenses are paid through this fund. These expenses are recorded in a separate book systematically which is known as petty cash book. It has been designed under the format of AGF No. 22.
At the beginning of the fiscal year, the petty cash fund is created. At the end of each month, the petty cash fund is reimbursed. At the end of the fiscal year, the petty cash fund is closed by depositing the surplus amount in the bank.
The main objectives of petty cash fund are as follows: -
The importance and advantages of petty cash fund are as follows: -
What are the importance of petty cash fund?
The importance and advantages of petty cash fund are as follows: -
What are the objectives of petty cash fund?
The main objectives of petty cash fund are as follows: -
State any two objectives of petty cash fund.
Any two objectives of petty cash fund are as follows:
State any two importance of petty cash fund.
Any two importance of petty cash fund:
What is petty cash fund?
The petty cash fund is an amount, which is maintained by government office for making payments of small expenditures like refreshment, newspapers, postal stamp, taxi fare etc. These types of expenditures occur in government offices frequently.
From the following information, you are required to prepare petty cash book/ account.
Bhadra 1 Balance of petty cash fund Rs. 150.
Bhadra 2 Cheque received for Rs. 350 for reimbursement of petty cash fund.
Bhadra 5 Paid for refreshment of Rs. 30 through cash payment slip no. 001.
Bhadra 8 Paid for taxi fare of Rs. 70 through cash payment slip no. 002.
Bhadra 15 Paid for labour charges of Rs. 38 through cash payment slip no. 003
Bhadra 18 Paid for stationery of Rs. 20 through cash payment slip no. 004.
Bhadra 29 Paid for newspapers of Rs. 50 through cash payment slip no. 005.
Government of Nepal | AGF No. 22 | ||||||||||
….Office/Dept./Ministry | |||||||||||
Petty Cash Book/ Account | |||||||||||
Date | Particulars | JV No. | Debit | Credit | Dr./Cr. | Balance | |||||
Rs. | Paisa | Rs. | Paisa | Rs. | Paisa | ||||||
Bhadra 1 | Balance b/d | Dr. | 150 | ||||||||
Bhadra 2 | Cheque received | 350 | Dr. | 500 | |||||||
Bhadra 5 | Paid for refreshment | 001 | 30 | Dr. | 470 | ||||||
Bhadra 8 | Paid for taxi fare | 002 | 70 | Dr. | 400 | ||||||
Bhadra 15 | Paid for labour charges | 003 | 38 | Dr. | 362 | ||||||
Bhadra 16 | Paid for stationery | 004 | 20 | Dr. | 342 | ||||||
Bhadra 29 | Paid for newspaper | 005 | 50 | Dr. | 292 |
Enter the following transactions in the petty cash book.
Jestha 1 Cash balance as per petty cash book was Rs. 400.
Jestha 5 Payment for water supply charges Rs. 50.
Jestha 8 Wages for maintenance Rs. 60.
Jestha 10 Expenses for tea Rs 15.
Jestha 15 Telephone charges Rs. 20.
Jestha 20 Purchased stationery Rs. 50.
Jestha 25 Purchased pens of Rs. 25
Jestha 30 Above expenses were reimbursed.
Government of Nepal | AGF No. 22 | |||||||||||
….Office/Dept./Ministry | ||||||||||||
Petty Cash Book/ Account | ||||||||||||
Date | Particulars | JV No. | Debit | Credit | Dr./Cr. | Balance | ||||||
Rs. | Paisa | Rs. | Paisa | Rs. | Paisa | |||||||
Jestha 1 | Dr. | 400 | ||||||||||
Jestha 5 | Payment for water supply charges | 50 | Dr. | 350 | ||||||||
Jestha 8 | Wages for maintenance | 60 | Dr. | 290 | ||||||||
Jestha 10 | Expenses for tea | 15 | Dr. | 275 | ||||||||
Jestha 15 | Telephone charges | 20 | Dr. | 255 | ||||||||
Jestha 20 | Purchased stationery | 50 | Dr. | 205 | ||||||||
Jestha 25 | Purchased pens | 25 | Dr. | 180 | ||||||||
Jestha 30 | Reimbursement of petty cash fund | 220 | Dr. | 400 |
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