If small cash payments are initially recorded in a Petty Cash Book, rather than being recorded directly into the general ledger, there will be . . .
Select ONE answer:
- more entries in the general ledger.
- fewer entries in the general ledger.
- the same number of entries in the general ledger.
- no entries in the general ledger in respect of petty cash.
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Incorrect – A Cash sales should be recorded in the cash book (or cash receipts book).
- Correct – There will be fewer entries in the general ledger because several transactions involving petty cash will be grouped in the petty cash book and then posted, as a single total, to the general ledger.
- Incorrect – Goods sold on credit should be recorded in the sales journal.
- Incorrect
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