JAMB UTME - Principles of Accounts - 2014

Question 1 Report

Petty cash book records transactions on

the debit side only

the credit side only

both credit and debit sides Correct answer

reversed entry

Answer Details

Petty cash book is a ledger used to record small, day-to-day transactions of a business. It is maintained to keep track of small expenses, such as stationery, refreshments, and other miscellaneous items, that do not require a formal purchase order. The petty cash book records transactions on both credit and debit sides. When a petty cash transaction occurs, the amount is entered on the debit side of the book, indicating the increase in petty cash. When the petty cash is used to make a payment, the amount is entered on the credit side of the book, indicating the decrease in petty cash. Therefore, the correct answer to the question is: both credit and debit sides. Petty cash book records transactions on both the credit and debit sides of the book.

Income and Expenditure (Extract)
	₦		₦
Bal. b/d	390	Expenses	300
Sales of tickets	4,000	New tool	510
Donations	3,000	Repairs	400
Subscriptions	6,500	Electricity	350






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