A petty cashier was allocated an imprest float of ₦15,000 at the beginning of the month. During the month, payments were made for office stationery of ₦3,500, transport fares of ₦2,200, and cleaning supplies of ₦1,800. What amount of cash is required to reimburse the petty cashier at the end of the month to restore the float to its initial balance?
Answer: 7500 ₦
Answer
The reimbursement amount required to restore the imprest float is ₦7,500.
Under the imprest system of petty cash, a fixed float is established at the start of a period. At regular intervals, the petty cashier is reimbursed an amount equal to the total disbursements made during that period. Since total expenses incurred are ₦3,500 + ₦2,200 + ₦1,800 = ₦7,500, the reimbursement needed to restore the float to ₦15,000 is ₦7,500.
Step-by-Step Solution
Key Concept
Imprest System Float Reimbursement
Estimated Time:45s