PRC-1 · Chapter 2 · Question 41 of 100
The petty cashier of 'Silver Line' started the month with an imprest of Rs. 5,000. During the month, Rs. 3,200 was spent on minor expenses. Management then decides to permanently increase the imprest limit to Rs. 8,000. What total amount must be transferred to the petty cash tin?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Rs. 6,200
Explanation
The cashier needs Rs. 3,200 just to restore the original float of Rs. 5,000. To further increase the float limit to Rs. 8,000, an additional Rs. 3,000 is required. Therefore, the total transfer is Rs. 3,200 + Rs. 3,000 = Rs. 6,200.
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