ACCA FA · Chapter 3 · Question 6 of 10
A business operates a petty cash imprest system with a float of $350. During the month, petty cash vouchers totalling $212 were paid out, and an employee repaid $30 for personal telephone calls, which was put into the petty cash box. How much cash is needed to restore the float at the end of the month?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $182
Explanation
Cash in the box at the month end = $350 - $212 + $30 = $168. To restore the imprest of $350, the amount required = $350 - $168 = $182 (equivalently, expenditure of $212 less the $30 received). $168 is the cash remaining, not the top-up needed.
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