Accounts by BPP Learning Media

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Most businesses keep petty cash on the premises, which is topped up from the main bank account. Under the imprest system, the petty cash is kept at an agreed sum, so that each topping up is equal to the amount paid out in the period. Quick quiz 1 Name four pieces of information normally shown on an invoice. 2 Which of the following is not a book of prime entry? A B C D 3 Which of the following is a source document for petty cash? A B C D 4 42 Purchase invoice Quotation Sales invoice Receipt and claim form What is the purchase returns day book used to record?

4 below). 1 Authorisation An employee must complete a petty cash voucher detailing the expenses claimed. Usually receipts must be attached to the voucher (see below: evidence). The completed voucher then needs to be signed by (say) the employee’s manager to authorise payment. Some times the petty cashier may be authorised to sign vouchers for small amounts (eg £5 or less) if these are supported by receipts. 2 Evidence All petty cash vouchers must have receipts for the expenditure attached, as evidence that the employee has really incurred that cost.

Iv) At the end of the day's trading on 17 July, and after drawings have been appropriated out of profit. (b) State the business equation showing profit earned during the week ended 17 July. Activity 2 (5 minutes) Before you look through the solution, can you state the formula for the business equation? 55 Part A: Basic Accounting NOTES Solution There are a number of different transactions to account for here. This solution deals with them one at a time in chronological order. ) (a) (i) The addition of Courtney's extra capital and Uncle Felix's loan An investment analyst might define the loan of Uncle Felix as a capital investment on the grounds that it will probably be for the long term.

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