- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
My Question:
An organisation restores its petty cash balance to $250 at the end of month. During October, the total expenditure column in petty cash book was calculated as being $210, and imprest was restored by this amount. The analysis column posted to the nominal ledge totalled only $200.
A. The trial balance being $10 higher on the debit side
B. The trial balance being $10 higher on the credit side
C. No imbalance in the trial balance
D. The petty cash balance being $10 lower than it should be
Which one of the following would this error cause?I know the principal operation of imprest system but i just want to know what does the last sentence in my question imply to? Is that the amount of expenditure in cash book or the petty cash voucher in petty cash book ?
I don’t think this is actually a very good question.
However I would assume it to mean that the total receipt debited to the petty cash was correct, but that the credit posted to the nominal ledger was $10 too small. This would mean that the answer would be A.However it is a poor question because it could be interpreted in more than one way.
- You must be logged in to reply to this topic.