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JAMB Principles of Accounts 2009 Question 9

Question 9

Petty Cash

Period 1: Cash to petty cashier 1000; Petty cashier pays out 780
Period 2: Petty cashier pays out 840
If the float is increased to ₦1200, how much should the petty cashier receive after period 2?

  1. A.160
  2. B.840
  3. C.1000
  4. D.1040
Show the answer and explanation

Answer: D (1040)

Explanation

After period 2 the cashier holds 1 000 − 840 = ₦160. To bring it to the new float of ₦1 200 he needs 1 200 − 160 = ₦1 040.