UBAF Tutorial_6

(1a) What are the purposes of cash book? (Thomas, A., 2006, p.69)

I reduces the numbers of entries in ledger

II enables division of labour

III facilitates cross referencing to cash & bank accounts with use of separate book

IV decreasing the number of entries in the related accounts

A I, II & III

B I, II & IV

C I, III & IV

D II, III & IV

(1b) What are the purposes of petty cash? (Thomas, A., 2006, p.81)

I To minimize the frequency of making small payment by cheque

II To reduce the number of small payments entries in the cash book

III Facilitate job rotation & enhancing job enrichment

IV Enable assignment of job for small payment recording to a junior staff

A I, II & III

B I, II & IV

C I, III & IV

D II, III & IV

(1c) A debit balance of $500 in th e “cash” column of the cash book shows that….(Woods, F., 2007, p.136)

A $500 has been paid out

B $500 is owing

C amount received exceeds the amount paid by $500

D $500 has been credited into the bank account

(1d) For safety purpose, Mr. Lim decided to reduce his cash till float. $300 was taken from cash till & subsequently banked into business? C urrent Account with ABC Bank. Which of the following correctly reflects the said transaction? (Woods, F., 2007, p.137)

A debit bank column, credit cash column with $300 respectively

B debit cash column, credit bank column with $300 respectively

C debit cash column, credit cash column with $300 respectively

D debit bank column, credit bank column with $300 respectively

(1e) A credit balance of $3,000 in the bank column in the cash book indicating: (Woods, F., 2007, p.145)

A there is $3,000 cash in the bank

B there is $3,000 cash in hand

C bank account is overdrawn by $3,000

D bank owes the company $3,000

(1f) If bank account in the book shows a credit balance of $1,100, the account holder deposits $500 & draws a cheque for $300, the balance in the bank account should be ….(Woods, F., 2007, p.145)

A $900 (Cr)

B $900 (Dr)

C $1,300 (Dr)

D $1,300 (Cr)

(1g) Which of the following unlikely be paid by petty cash? (Thomas, A., 2006, p.81)

A payment for a set of spare key C payment for light refreshment

C reimbursement for a 1 litre

D monthly salary of an accounts

motor oil clerk.

(1h) If petty cash fund works on an imprest amount of $500 & during the week, the amounts paid are: general expenses $10, stationery $75, postage $112, courier charges $99, what is the amount of reimbursement? (Woods, F., 2007, p.396)

A $500

B $296

C $204

D $278

(2) Jones is in business as construction materials merchant. The following receipts & payments by cheque took place during May 2008:

RM

May 1 Bank balance per cash book 3,500

3 Introduce additional capital 2,000

4 Sales by cheque 800

7 Purchases by cheque 510

10 Paid wages by cheque 200

13 Paid rental by cheque 360

15 Cash sales paid into bank 490

18 Purchase shop fittings 2,450

20 Paid gas bill 180

23 Bought stationery by cheque 70

26 Drawings by cheque 250

31 Sent Bricks Sdn Bhd a cheque RM850, after

Deducting cash discount RM45.

31Paid Stone Sdn Bhd RM220 after deducting

cash discount of RM20.

31Pine Sdn Bhd sent us a cheque for RM485, after

deducting RM25 cash discount.

31Sent Slate Bhd a cheque for RM480 after

after deducting cash discount of RM40.

31 Lemon Bhd sent us a cheque 575 Required:

Show the entries in respect of the above in a 2-column cash book. (Thomas, A., 2006, p.78)

(3) Enter the following in the three-column cash book of an office supply shop. Balance off the cash book at the end of the month and show the discount accounts in the general ledger.

(4)

Syarikat Percetakan Oakhill operates its petty cash account on the imprest system. It is maintained at a figure of RM80 on the first day of each month. At 30 April 2009 the petty cash box held RM19.37 in cash. During May 2009, the following transactions took place:

RM

May 1 Reimbursement of cash to restore imprest to be derived

1 Bus fare 0.41

2 Stationery 2.35

4 Bus fare 0.30

7 Postage stamps 1.70

7 Trade journals 0.95

8 Bus fare 0.64

11 Correction fluid 1.29

12 Typewriter ribbons 5.42

14 Parcel postage 3.45

15 Paper clips 0.42

15 Newspaper 2.00

16 Repair of photocopy machine 16.80

19 Postage 1.50

20 Drawing pins 0.38

21 Train fare 5.40

22 Photostat paper 5.63

23 Display / decoration items 3.07

23 Blue pen 1.14

25 Wrapping paper 0.78

27 Tying string 0.61

27 Sellotape 0.75

27 Marker pen 0.46

28 Service of typewriter 13.66

30 Bus fare 2.09

June 1 Cash received to restore imprest to be derived Required:

Open & post the business?s petty cash account for the period 1 May to 1 June 2009, inclusive & balance the account at 30 May 2009.All items of expense in …payment? column should be analysed into suitable expense column, namely transportation, stationery, postage, office expenses and newspapers & periodicals. (Thomas, A., 2006, p.85)

(1a) A(1b) B(1c) C(1d) A(1e) C(1f) A

(1g) D(1h) B