A petty cash book has an imprest amount of $100 which is restored on the last day of each month. During August, the petty cash payments totalled $86. A loan from petty cash, $20, to a member of staff in July was repaid on 29 August. The imprest was restored on 31 August. How much was shown for petty cash in the statement of financial position prepared at close of business on 31 August? A $14B $3 C $66D $100
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
- A petty
cash book has an imprest amount of $100 which is restored on the last day of each month. During August, the petty cash payments totalled $86. A loan from petty cash, $20, to a member of staff in July was repaid on 29 August. The imprest was restored on 31 August.
How much was shown for petty cash in the
A $14B $3 C $66D $100
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