PRC-1 · Chapter 2 · Question 51 of 100
Under the imprest system, 'BlueSky Logistics' maintains a petty cash float of Rs. 12,000. During the month, the petty cashier recorded total expenses of Rs. 8,500. What amount must the main cashier provide to replenish the petty cash fund at the end of the month?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 8,500
Explanation
In an imprest system, the exact amount of expenses incurred during the period (Rs. 8,500) is reimbursed to the petty cashier to restore the physical cash balance to the original fixed float (Rs. 12,000).
More Books of Prime Entry MCQs
- Q53Which of the following documents serves as the primary source document for recording a transaction in the Sales Day Book?
- Q54'Crescent Furniture' receives a cheque of Rs. 48,000 from a customer in full settlement of a Rs. 50,000 debt. What is the correct…
- Q55Which of the following is NOT classified as a book of prime (original) entry?
- Q56'Vertex Traders' owes Rs. 15,000 to 'Horizon Suppliers'. Conversely, 'Horizon Suppliers' owes Rs. 10,000 to 'Vertex Traders'. If they…
- Q57In a three-column cash book, where are settlement discounts received from credit suppliers recorded?