Let us understand what is an event and a transaction, before learning about their differences.TransactionsIt involves exchange of goods/services for value between more than one party, firm or accounts and is called financial transactions. A transaction has monetary impact on the financial statements. Transactions are recorded in books of accounts.A ... Read More

The journal entries for imprest petty cash system are recorded as follows −Fund establishment − (Imprest petty cash fund = 150)AccountDebitCreditPetty cash150Cash150Total150150Payments− (Postage payment = 35, stationery payment = 50)AccountStartEndCash held15065Postage payment35Stationery payment50Total150150Fund replenished − (Postage payment = 35, stationery payment = 50)AccountDebitCreditcash85Postage payment35Stationery payment50Total8585Errors − (Postage payment = 25, ... Read More

In this imprest cash system, the balance of petty cash funds always remains fixed or constant. The amount to be fixed is decided at the start or first time at a fund established. During the period, the petty cashier pays the expenses and maintains vouchers for that.At the end, the ... Read More

Refer the data given below to prepare a ledger balance −      Analysis columns CrReceiptFolioDateParticularsVNTotalPostageStationaryTravelling expensesOffice expensesLedger folioLedger account15000CBMar1Cash          Mar3Bus fare11200  1200     Mar5stamps2800800       Mar10Stationary32200 2200      Mar 15Office messenger42800   2800    Mar 17Mr. V53800    PL13800  Mar 18telegrams6900900       Mar23Train fares72100  2100     Mar 24Carbon papers8700 700      Mar 27Office expenses91150   1150  15650 Jan 31Cash 156501700290033003950 3800     15000        Jan 31Balance 30620      SolutionGiven below is the ledger balance as on March 31 2011, by using the columnar petty cash book −General ledger as on ... Read More

Refer the data given below−Transactions (Year 2015) (*in rupees)Jan 1       Received cash float       25000Jan 3       Paid for bus fare            1500Jan 5       Bought stamps             1000Jan 10    Paid for stationary   ... Read More

Columnar petty cash books consist of both debit and credit sides. In this book, there are many columns which record day to day expenditures.All the particulars (cash receipts and expenses) which are recorded all together in a single column are called a particular column and in other columns date of ... Read More

We will understand how to enter the transactions in a petty cash book with the help of two examples which are given below.Example 1Transactions for July, petty cashier gets Rs.300/- in advanceJuly 2           Paid for kitchen supplies    Rs. 40/-July 5         ... Read More

We can prepare accounts receivable and accounts payable ledger postings by using triple column cash book entries. Refer the data given below −454 – Discount allowed ledger number (expense account)480 – Discount received Léger number (revenue account)SolutionThe solution is as follows −Accounts receivable ledgerM&CO            no. 28DateDescriptionPRAmount($)DateDescriptionPRAmount($)April 5thCash311350April ... Read More

Refer the data given below −TransactionsAug 1       Bank balance b/d                                        $28000Aug 1       Cash balance                       ... Read More

Refer the data given below −TransactionsOn Nov 5th check received is not deposited on same dateNov 1       Cash in hand $950,    cash at bank $4500Nov 3       Paid to J & Co by check $1500    discount received $20Nov 5       Amount ... Read More