Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being #4,000. The following transactions took place for a particul...

The imprest system fixes petty cash at a set amount, here \( \text{#}4{,}000 \). At the start of December, \( \text{#}517 \) remained in hand, and the cashier was reimbursed \( \text{#}3{,}483 \) to restore the float back to the full imprest amount: \( \text{#}517 + \text{#}3{,}483 = \text{#}4{,}000 \).

During the month, the following payments were made out of petty cash:

In an analysed petty cash book, each payment is recorded once in the total column and again in the analysis column that matches its nature. Stationery covers items used for writing and correspondence, which here means the notebooks and the envelopes:

The postage stamps ( \( \text{#}375 + \text{#}210 = \text{#}585 \) ) belong under a separate postage heading rather than stationery, since they are used to send items rather than to write on or contain them. Wages and the payment to the creditor are unrelated categories entirely.

Examination reminder: when a petty cash book asks for spending "on stationery," only include items genuinely used for writing, filing, or packaging correspondence; postage stamps, though often listed nearby, belong to their own analysis column.