ACCA Applied Knowledge · Financial Accounting · Cash
Which of the following is a purpose of the petty cash book rather than the main cash book?
The petty cash book records small, routine cash expenses such as postage or travel, with analysis columns by type of expense. Larger items such as customer receipts, cheque payments to suppliers and loan repayments go through the main cash book.
- ATo record small, routine cash expenses, analysed by type of expenseCorrect
- BTo record all receipts from credit customers
- CTo record payments to suppliers by cheque
- DTo record bank loan repayments
Explanation
The petty cash book handles low-value cash payments and analyses them in columns by expense type. Customer receipts, cheque payments and loan repayments go through the main cash book/bank account.
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