Q.Kavya Traders maintains its Petty Cash Book on the Imprest System with a monthly imprest of ₹2,000. During October 2026, the petty cashier spent: Postage ₹250, Stationery ₹380, Conveyance ₹420, Sundry Expenses ₹150. Compute the amount the main cashier must reimburse at the end of October to restore the imprest, and show the Petty Cash Book summary.

Small payments are recorded in the Petty cash book — option (d).

Why a petty cash book?

• A business makes many small payments daily — postage, carriage, stationery, refreshments, conveyance. Recording each of these in the main cash book would overload it.
• These small payments are therefore recorded separately in the Petty cash book, kept by a petty cashier. …

Small payments are recorded in the Petty Cash Book.

Every business makes many small, repetitive payments — postage, carriage, stationery, conveyance, refreshments, etc. Recording all of these in the main cash book would make it bulky. So they are entered in a separate book called the Petty Cash Book, maintained by a petty cashier, commonly under the imprest system (the petty cashier is given a fixed float which is reimbursed by the amount spent).

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