Question 8
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 to be reimbursed at the end of the month is
- A.N4,000
- B.N3,728
- C.N3,483
- D.N1,842
Show the answer and explanation
Answer: B (N3,728)
Explanation
Total spent = 328 + 914 + 375 + 536 + 928 + 437 + 210 = N3,728, which restores the float to N4,000.