WAEC Financial Accounting 2022 Question 39

Question 39

Petty Cash

Use the following information to answer questions 39 to 41
Bola a grocer, keeps petty cash on the imprest system, the float being GH¢8,000. These transactions took place in January 2018.
January 1 Petty cash in hand GH¢1,034
January 1 Petty cash to restore float GH¢6,966
January 6 Bought note books GH¢656
January 7 Paid wages GH¢1,828
January 14 Bought postage stamps GH¢750
January 16 Paid to Biodun, a creditor GH¢1,072
January 18 Paid wages GH¢1,856
January 23 Purchased envelopes GH¢874
January 28 Purchased postage stamps GH¢420
Amount posted to the personal ledger was

  1. A.GH¢6,966
  2. B.GH¢3,684
  3. C.GH¢1,072
  4. D.GH¢1,034
Show the answer and explanation

Answer: C (GH¢1,072)

Explanation

Only the payment to Biodun, a creditor (GH¢1,072), goes to a personal account.