Diamond Ringo business was started when Mr. Diamond brought in a cheque of N500,000, which was paid into the bank account. Which of the following entries properly records the transaction?
A.
Cash account was credited with N500,000 and capital account was debited with N500,000
B.
Bank account was debited with N500,000 and capital account was credited with N500,000
C.
Bank account was accredited with N500,000
D.
Mr. diamond acount was debited with N500,000 and the cheque account was credited with N500,000
What are the advantages of an imprest petty cash book?
I cheques can be drawn easily
II A cheque on the use of cash
III Liability of the petty cashier is limited to the value of petty cash
IV Loses through the petty cashier can be minimized
