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Difficulty: MediumPetty Cash Book and the Imprest System

On July 1, 2026, an enterprise operating a petty cash imprest system had a remaining cash balance of ₦6,500₦6,500 in the petty cash box from the previous month. The chief cashier replenished the float to its agreed limit of ₦40,000₦40,000. During July, disbursements were made for office stationery (₦12,300₦12,300), bus fares (₦7,500₦7,500), and courier services (₦9,400₦9,400). What is the amount of cash in Naira (₦₦) remaining in the petty cash box at the end of July 2026 before any reimbursement is made?

Answer: 10800 ₦

Answer

The amount of cash remaining in the petty cash box at the end of July 2026 before reimbursement is ₦10,800₦10,800.
Under the imprest system, the float is restored to the agreed limit at the start of the accounting period (₦40,000₦40,000). Total expenses paid during July equal ₦12,300+₦7,500+₦9,400=₦29,200₦12,300 + ₦7,500 + ₦9,400 = ₦29,200. Therefore, the cash remaining in the petty cash box before any reimbursement is ₦40,000−₦29,200=₦10,800₦40,000 - ₦29,200 = ₦10,800.

Step-by-Step Solution

1
Calculate the total petty cash expenses disbursed during the month
Total Disbursements = ₦12,300+₦7,500+₦9,400=₦29,200₦12,300 + ₦7,500 + ₦9,400 = ₦29,200
Summing all paid petty cash vouchers gives the total cash spent out of the petty cash box during July.
2
Calculate the remaining cash balance before reimbursement
Remaining Cash = Imprest Float - Total Disbursements = ₦40,000−₦29,200=₦10,800₦40,000 - ₦29,200 = ₦10,800
Under the imprest system, cash remaining in the box equals the total agreed imprest float minus total cash spent.

Key Concept

Imprest System Remaining Cash Balance Calculation
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Topics

Petty Cash Book and the Imprest System

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