ACCA Applied Knowledge · Financial Accounting · Cash
A business uses an imprest system for petty cash with a float of $200. At the end of the month, the petty cash vouchers total $146 and the cash remaining in the box is $54. What amount must be reimbursed from the main bank account to restore the float?
The reimbursement is $146. Under the imprest system, the petty cash is topped up by exactly the amount spent, shown by the vouchers, so that the box returns to the $200 float. The $54 left in the box is not added to the reimbursement.
- A$54
- B$146Correct
- C$200
- D$92
Explanation
Under the imprest system the amount reimbursed equals the expenditure for the period, which is the total of the vouchers: $146. Cash in box $54 plus $146 restores the $200 float. Reimbursing $54 would only top up by the cash still held, which is wrong.
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