Question 1

A company operates a petty cash imprest system with a float of $300. At the end of the month, the petty cash box contains $45 in cash and vouchers for office supplies ($120), taxi fares ($80), and postage ($50). The cashier realizes there is a cash shortage. How much cash must be withdrawn from the bank to restore the imprest amount?

Accepted Answer

In an imprest system, the reimbursement amount is always the difference between the imprest level and the actual cash remaining.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Reimbursing only the voucher total ($250) and ignoring the cash shortage.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 2

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