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Imprest System

Forums › FIA Forums › FA1 Recording Financial Transactions Forums › Imprest System

  • This topic has 3 replies, 2 voices, and was last updated 4 months ago by Ken Garrett.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • September 23, 2024 at 1:11 am #711646
    arifahrosidi
    Participant
    • Topics: 1
    • Replies: 16
    • ☆

    Ali operates an imprest system for petty cash, and the float in petty cash is topped up to $250 at the end of each month.

    During April, $25 was paid into petty cash by employees paying for private use of the office photocopier and a cheque for $20 was cashed for an employee out of petty cash. During April, cheques for $340 were drawn by Ali for petty cash.

    How much cash was paid out for petty cash expenses during April?

    A $295
    B $345
    C $355
    D $385

    I don’t understand how to do this, why does Ali drawn cheque $340 for petty cash but his imprest amount is only at $250? Does he suddenly decides to increase his petty cash float amount?

    September 23, 2024 at 4:53 pm #711673
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10590
    • ☆☆☆☆☆

    If there is a run on PC ie lots of expenditure, then it will need to be topped up during the month to stop it running out.

    So, if we have $250 in the PC box at 1 April, then $25 is paid in and $20 paid out, there would be $255. $340 is also paid in and this should bring the amount back to $250 the imprest target amount.

    Therefore, $345 must be the expenditure on PC expenses:

    255 + 340 – EXPENDITURE = 250

    EXPENDITURE must be $345.

    January 24, 2025 at 5:02 am #714931
    arifahrosidi
    Participant
    • Topics: 1
    • Replies: 16
    • ☆

    Now I understand. Thank you so much and sorry for the late reply.

    January 28, 2025 at 10:10 am #715027
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10590
    • ☆☆☆☆☆

    No problem.

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