Question

The petty cash float in a business has an imprest amount of £200. At the end of March vouchers in the petty cash box totalled £136 and the amount of cash remaining in the box was £54.

Which of the following explains the difference?
A A petty cash voucher for £10 is missing.
B An employee was given £10 too little when making a petty cash claim.
C An employee reimbursed petty cash with £10 in respect of postage stamps used, but no voucher was prepared.
D A voucher for £10 was put in the box but no payment was made to the employee.

Answer 1

The discrepancy in the petty cash float is due to a missing petty cash voucher for £10, causing a £10 shortage in accounting for the imprest amount of £200.

Step-by-step explanation:

The difference in the petty cash float can be explained by the fact that a petty cash voucher for £10 is missing. Here's how we calculate this:

• The imprest amount is £200.
• Vouchers total £136.
• Cash remaining is £54.

Adding the vouchers total and the cash remaining gives us £136 + £54 = £190. Since the imprest amount is £200, we are missing £10, which accounts for the discrepancy. This indicates that a £10 voucher exists but has not been accounted for in the petty cash box.

The difference between the total vouchers in the petty cash box (£136) and the remaining cash in the box (£54) can be explained by option C: An employee reimbursed petty cash with £10 in respect of postage stamps used, but no voucher was prepared.