WAEC Accounting 2013 Theory — Question 1

Model answer

(a) Imprest system: This is defined as a system of maintaining a special account called petty cash book for recurring small expenses with periodic reimbursing. (b) Petty cashbook: This can be defined as a book of original entry used to record small expenses which will be transferred to the main cashbook at the end of the period. (c) Memorandum entries: This can be defined as non-double entry record which does not necessarily have to balance such as sales day book. (d) Three-column cashbook: This is a book of original entry with special columns of discount, cash and bank to record float of monies in each transaction. (A related term, journal proper, can be defined as a subsidiary book into which all other transactions that cannot form part of the sub-sidiary books are recorded.)