Question

Prepare Subsidiary Books for following transactions in the books of M/s. Raj & Company for the month of October 2020.

1. Purchased goods from Nalini Rs. 15,000/- @ 5% T.D.
2. Sold goods to Sahil Rs. 12,000/-.
4. Seema sold goods to us Rs. 20,000/- @ 10% T.D.
6. Sent debit note to Nalini Rs. 1,500/- (Gross) for goods returned.
8. Invoiced goods of Rs. 10,000/- to Ajay @ 5% T.D. on credit. 10. Received credit note from Seema Rs. 2,000/- (Gross)
12. Purchased furniture of Rs. 8,000/- from Rajesh
16. Purchased goods from Kunal Rs. 24,000/- & sold the same to Kiran at 20% profit on cost.
20. Sent credit note to Sahil Rs. 3,000/- (Net). 24. Kiran returned goods of Rs. 3,600/- as they were defective & the same were returned to Kunal.
28. Purchased goods of Rs. 6,000/- for cash.​

Answer 1

Answer:

Under the imprest system of Petty Cash Book, the chief cashier makes the reimbursement of the amount spent by the petty cashier; this makes the closing balance of the Petty Cash Book the same as the opening balance. The amount that the main cashier hands over to the petty cashier is known as imprest or float. Suppose, on 1st April 2014, the amount given to the petty cashier is Rs 200 and Rs160 were spent during the month. So, the chief cashier makes the reimbursement of Rs 160 to the petty cashier and after including the remaining balance, i.e. Rs 40, the closing balance will be same as the opening balance.