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Home > Business Services > Business Services (120/240 hours) > Prepare and process financial/business documents > Prepare and process financial/business records

Test your knowledge

1. Briefly explain what is a petty cash system and why it is needed.
    
2. Suggest three ways of ensuring the security of the petty cash fund.
    
3. Explain ‘imprest amount’
    
4. The following questions refer to these transactions, recorded in the petty cash book.

   Date	Transaction	Amount
   May 1	Petty cash imprest (Chq 101)	200.00
   2	Tea and coffee	15.00
   3	Taxi fares	30.50
   4	Stamps	10.25
   7	Newspapers	8.65
   8	Stationery	26.60
   9	Express Post Parcel	22.80
   10	Donation	20.00
   11	Reimbursement calculated

   
    
   1. What is the imprest amount for this fund?
   2. What would be the total entered into the Postage column?
   3. What would be the total entered into the Travel column?
   4. This organisation rarely makes ‘donations’ from the petty cash fund. Which dissection is most likely to be used?
   5. What amount is required to reimburse the petty cash fund on 11 May?
   
    
5. The total amount recorded on Petty Cash vouchers for the period plus the amount of cash in the petty cash tin should always equal the imprest amount. Explain.
    
6. Discuss the need for accountability and security when dealing with petty cash in an organisation.
    
7. Our business has taken the following credit transactions today. What will be the total on the Merchant Summary?
   
   Sales voucher for $150; Sales Voucher for $55; Sales Voucher for $27.50; Credit Voucher for $132; Sales Voucher for $22.
    
8. What is a dishonoured cheque?
    
9. Why might a bank dishonour a cheque?
    
10. How often should an organisation’s banking be done?
     
11. The following cash is in your cash tin. Calculate the total. (Don’t forget that a bundle consists of 10 notes of the same denomination.)
    
    2 bundles of $100; 1 bundle of $50 plus 3 x $50; 2 bundles of $20 plus 6 x $20; 5 x $10; 3 x $5; 30 x $1; 25 x $2; 15 x .50c; 6 x .20c.
     
12. Identify this information from the following cheque.
    
    Drawer, drawee, payee, amount.
    
    Does the amount in figures and words agree?
    
    Can this cheque be cashed? Why/why not?

    

13. What is the amount owed by a business if it receives 5% discount on an invoice totalling $1850?
    
    1. 92.50
    2. 925.00
    3. 1757.50
    4. 1942.50
        
14. Belinda’s Bag Store has the following transactions with Leather Goods P/L during the month of January. Determine how much Belinda’s Bags owes at the end of the month.
    Belinda’s Bag Store receives: Invoice for $355; Receipt for $927 including Discount Received $23; Invoice for $450; Adjustment Note for $45; Balance C/F from December $950.
    
    1. $665
    2. $760
    3. $806
    4. $1140
       
    
     
15. A business offers a Trade Discount of 2.5% and a prompt Payment discount of 5%. Cost of goods (including GST) is $250.00.
    How much will you pay if you can take advantage of both discounts (rounded to closest 5c)?
    
    1. 231.55
    2. 231.25
    3. 268.75
    4. 255.95

Answers