Accounting · Petty Cash Book
An accountant manages a petty cash book using the imprest system, with the fixed amount set at 10,000 rupees. During April 2025, expenditures incurred are: 1,200 rupees on postage, 2,500 rupees on office cleaning, 800 rupees on staff tea, and 1,500 rupees on conveyance. At the end of the month, the main cashier replenishes the petty cash. Which entry in the main ledger and closing balance in the petty cash book are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Debit Cash Account 6,000 rupees and Credit Petty Cash Account 6,000 rupees; Closing balance 6,000 rupees.
- 2Debit Petty Cash Account 10,000 rupees and Credit various expense accounts 10,000 rupees; Closing balance zero.
- 3Debit various expense accounts 6,000 rupees and Credit Petty Cash Account 6,000 rupees; Closing balance 10,000 rupees.✓
- 4Debit Petty Cash Account 6,000 rupees and Credit Cash Account 6,000 rupees; Closing balance 4,000 rupees.
Correct answer
Debit various expense accounts 6,000 rupees and Credit Petty Cash Account 6,000 rupees; Closing balance 10,000 rupees.
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