PRC-1 · Chapter 2 · Question 29 of 100
'Urban Cafe' uses a petty cash book based on an imprest of Rs. 5,000. The cashier paid Rs. 400 for office tea, Rs. 1,200 for taxi fares, and Rs. 500 for stationary. Before replenishment, what is the physical cash balance in the tin?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 2,900
Explanation
Total expenses incurred are Rs. 400 + Rs. 1200 + Rs. 500 = Rs. 2,100. The cash remaining in the tin is the imprest amount minus the expenses: 5,000 - 2,100 = Rs. 2,900.
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