PRC-1 · Chapter 2 · Question 32 of 100
'Coral Boutique' maintains a petty cash float of Rs. 10,000 under the imprest system. During the week, the petty cashier paid Rs. 2,500 for stationary and Rs. 1,500 for staff tea, leaving Rs. 6,000 in the tin. To restore the float, what amount will the main cashier reimburse?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 4,000
Explanation
Under the imprest system, the exact amount of the documented expenses incurred during the period (Rs. 2,500 + Rs. 1,500 = Rs. 4,000) is reimbursed to the petty cashier to bring the physical cash balance back to the fixed float of Rs. 10,000.
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