A petty cashier was maintained on the imprest system with an initial float of on March 1, 2026. During the month of March, the following transactions took place:
- Paid for office stationery:
- Paid for postage and stamps:
- Paid for office cleaning:
- Paid for staff traveling expenses:
- Paid to a ledger creditor (Mr. Okafor):
- Received refund from an employee for overpaid traveling expenses:
At the end of the month, management decided to increase the imprest float by starting from April 1. What is the total amount (in ) required from the chief cashier to restore and adjust the petty cash float to its new level?
Answer: 42200 ₦
Answer
The total amount required from the chief cashier to restore and adjust the petty cash float is .
Under the imprest system, the amount issued by the chief cashier must restore spent funds and accommodate any decided increase in the float. Net expenditure incurred during the period is total disbursements () minus refunds received (), yielding . Adding the increase in float gives a total required amount of .
Step-by-Step Solution
Key Concept
Imprest system reimbursement and float adjustment calculation
Estimated Time:2m 0s