Question 1

A service firm operates a petty cash imprest system with an imprest amount of $300. At the end of the month, the petty cash box contains $45 in cash and vouchers for the following expenses: Office supplies $120, Taxi fares $85, and Coffee/Tea $50. What amount needs to be withdrawn from the bank to restore the imprest balance?

Accepted Answer

Under the imprest system, the reimbursement amount equals the total of the expenses paid out (the vouchers).

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Reimbursing the remaining cash amount ($45) instead of the spent amount.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 3

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