Question 7
Petty CashTaiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being N4,000. The following transactions took place for a particular month:
Dec. 1 Petty cash in hand N517
1 Petty cash to imprest amount N3,483
6 Bought notebooks N328
7 Paid wages N914
14 Bought postage stamps N375
16 Paid to J. Thomas, a creditor N536
21 Paid wages N928
23 Bought envelopes N437
27 Bought postage stamps N210
Amount spent on stationery is
- A.N765
- B.N585
- C.N538
- D.N437
Show the answer and explanation
Answer: A (N765)
Explanation
Notebooks 328 + envelopes 437 = N765.