In a petty cash book the imprest is N1380.
Expenses:
Stationery N350
Cleaning material N335
General expenses N265
How much was received to maintain the imprest at the ends of the month?
-
N950
- N970
- N430
- N380
The correct answer is: A
Explanation
Imprest Amount: N1380
Total Expenses:
Stationery: N350
Cleaning material: N335
General expenses: N265
Total Expenses Calculation: 350 + 335 + 265 = 950
The imprest system means that at the end of the period, the petty cash should be restored to the original amount (N1380)
Amount to be received = Imprest − Total Expenses = 1380 − 950 = 430
So, N950 is the amount that needs to be received to bring the petty cash back to N1380.