Accounting 0452 · IGCSE · Books of prime entry

Books of prime entry — practice question

Sid runs a car-selling business. He uses a petty cash system and keeps the float at $350. On the first day of every month, the float is topped up from the business bank account. Sid has supplied the information below:
(a)[12]

Set up Sid’s petty cash book for April on page 3. Balance the petty cash book on 30 April 2025, then carry the balance forward to 1 May 2025. Replenish the float to the agreed amount.

(b)[1]

State the system name used to run petty cash books.

(c)[1]

State one benefit of running a petty cash account.

(d)[2]

State two reasons why the balance on the petty cash account could differ from the cash actually in the petty cash box.

(e)[4]

Provide the journal entries to record these transactions. Narratives are not required.

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