Question 1

A service firm uses the imprest system for petty cash with a float of $250. At the end of the month, the petty cash box contains $45 in cash and vouchers for office supplies ($120) and taxi fares ($80). A $5 voucher for postage is found to be missing, though the cash is gone. How much cash must be transferred from the main bank account to restore the imprest amount?

Accepted Answer

The reimbursement amount under the imprest system is always the Imprest Amount minus the Cash Remaining.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Adding up only the available vouchers (120 + 80 = 200) and ignoring the cash shortage.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 4

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