PETTY CASHBOOK ASSIGNMENT

Question

1. a) What reasons would lead a large firm to keep a separate cash book from a petty cash book?
2. b) DANTO COSMESTICS are dealers in cosmetics and hair styling for both women and men. The petty cashier currently has a balance form last month of shs 28,000. A cheque of shs 222,000 is being prepared to restore the imprest. A summary of her petty cash vouchers for the month of June 1997 is as follows:

1^st received the imprest amount

1^st postage stamps and envelope                                               6,000

3^rd glue and cello tape                                                   2,500

8^th news paper vendor                                                             12,800

11^th managers fuel bill                                                 25,000

14^th shop cleaning for the two weeks                         4,700

17^th fax to London                                                                1,800

19^th taxi hire for outdoor service                                 10,000

20^th creams and lotions                                                           50,000

21^st barbers wages                                                                   15,000

23^rd telephone cards                                                    27,500

25^th receipt books, invoice and writing pads              21,000

26^th cleaning materials                                                 18,000

28^th detergents (omo, jik)                                                        27,300

30^th telegrams                                                                3,400

Required:

Prepare a petty cash book with analysis columns using the following headings: postal services, stationery, shop expenses, travelling and ledger