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ACCA Applied Knowledge · Financial Accounting · Double-entry bookkeeping principles including the maintenance of accounting records

Brisco Co's petty cash is run on the imprest system with a float of $300. At month end, petty cash vouchers total $212 and cash in the box is $79. The petty cash book also shows a $9 receipt from an employee who repaid a personal purchase, which was already included in the cash in the box. What reimbursement is needed from the main bank account to restore the float?

Under the imprest system, the top-up equals the float less the cash remaining. That is $300 minus $79, giving $221. The reimbursement restores the float to $300, regardless of how the shortfall splits between vouchers and receipts.

  1. A$212Correct
  2. B$221
  3. C$203
  4. D$300

Explanation

Float $300 less cash in the box $79 gives $221 net decrease. This comprises vouchers paid out of $230 less the $9 receipt. If vouchers are $212 and the receipt is $9, the movement is $203, which does not agree with the $221 shortfall, so the data imply an unexplained $18 difference. The reimbursement restoring the float is therefore $221.

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