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WAEC Financial Accounting 2014 Question 25

Question 25

Petty Cash

A petty cash account has an imprest of D28,000. The account has a debit balance of D5,000. How much cash is needed to restore the imprest?

  1. A.D33,000
  2. B.D28,000
  3. C.D23,000
  4. D.D5,000.
Show the answer and explanation

Answer: C (D23,000)

Explanation

Cash needed = imprest − cash in hand = 28,000 − 5,000 = D23,000.