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the question :
Walton Ltd operates a petty cash imprest system.During the month an amount of $5 was received from a member of staff for private photocopying and petty cash vouchers amounting to $45 were approved.If the agreed float is $100?how much will the petty cash need to be topped up by at the end of the month?
A. $45
B. $40
C. $60
D.$35Answer said B, it’s wrong ??I don’t understand why B
Under imprest system, the petty cash is always topped-up to the imprest amount – here $100. $45 had been spent leaving 100 – 45 = 55, but then 5 had been received from the staff member. Therefore there is $60 in the petty cash box, so 100 – 60 = 40 is needed to bring the cash back to $100.
HTH
Total100
Less or Minus Expense:45
Add: Cash recieved 5
Formula: Float-expenses+IOU/Cash recieved for any reason
100-45+5=40
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