PRC-1 · Chapter 2 · Question 98 of 100
Which of the following is typically NOT a valid source document for entries in the petty cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A supplier's formal invoice for Rs. 500,000 of raw materials.
Explanation
Petty cash is explicitly for small, minor, incidental expenses. A major purchase of raw materials is a routine trading transaction that would go through the purchases day book or main cash book.
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