WAEC Financial Accounting 2014 Question 5

Question 5

Books of Original Entry

Which of the following subsidiary books involves cash movement?

  1. A.Sales day book
  2. B.Purchases day book
  3. C.Returns inwards book
  4. D.Petty cash book
Show the answer and explanation

Answer: D (Petty cash book)

Explanation

The petty cash book records actual cash paid out. The day books and returns book record credit transactions with no cash.