WAEC Financial Accounting 2022 Question 41

Question 41

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 reimbursed at the end of the month was

  1. A.GH¢8,000
  2. B.GH¢7,456
  3. C.GH¢6,966
  4. D.GH¢6,928
Show the answer and explanation

Answer: B (GH¢7,456)

Explanation

Total spent = 656 + 1,828 + 750 + 1,072 + 1,856 + 874 + 420 = GH¢7,456, which restores the float.