ACCA Applied Knowledge · Financial Accounting · Cash
A business uses a petty cash imprest system with a float of $200. During the month, petty cash vouchers total $146. How much cash must be drawn from the bank to restore the imprest amount?
The business draws $146 from the bank. Under an imprest system the top-up equals the vouchers paid out in the period, which returns the petty cash float to its fixed $200. The $54 is simply the cash still in the box.
- A$54
- B$146Correct
- C$200
- D$346
Explanation
Under the imprest system the amount reimbursed equals the total spent, so $146 restores the float to $200. Cash remaining is $54, which is not drawn again; choosing $54 confuses the cash left with the amount to reimburse.
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