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John Moffat.
John Moffat.-
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anjali1416
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hello, your lectures are so useful + the notes thank you so much!
i was practicing questions from a revision kit but wasn’t entirely sure and need a reasoning or explanation of why we add these back on to the current amount of petty cash in hand?
it says the petty cash in hand £66, and then there were the following petty cash vouchers:
sundry purchases £22, loan to sales manager £10, purchase of staff drinks £19 and sundry sales receipts £47..
and it asks what the imprest amount is, I understand that the first 3 items need to be added on to maintain the float as they were taken out to be spent for those reasons from the £66 but i don’t understand the last one sundry sales receipts and why that needs to be taken away
John Moffat
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The first 3 items were payments, so had reduced the petty cash – so needed adding back.
The sundry sales receipts were receipts of cash and so had increased the petty cash – so need subtracting.
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