Question

On 1 April Amara had a balance of £100 (the imprest amount) in petty cash. At the end of April she has vouchers totalling £38, a receipt for a refund for stationery of £4 and a note to say that an employee was reimbursed £12 in respect of postage costs but no voucher was issued.

How much does Amara need to reinstate her imprest balance at 30 April?
A £34
B £46
C £54
D £66

Answer 1

Amara needs to replenish her petty cash by £46 to restore the imprest balance after accounting for expenditures, the receipted refund, and the unreceipted reimbursement.

Step-by-step explanation:

To calculate how much Amara needs to replenish her petty cash to restore the imprest balance, we start with the imprest amount which is £100. We then need to account for all the expenditures and the refund.

Amara has vouchers totaling £38, a refund for stationery which amounts to £4 and an unreceipted reimbursement for postage of £12.

The total amount spent is the sum of vouchers and the reimbursement, which is £38 + £12 = £50. Since there was a refund, we subtract the £4 from the total expenditures, resulting in £50 - £4 = £46. Therefore, Amara needs to add £46 to the petty cash to bring it back up to the imprest amount of £100 at the end of April.

To reinstate her imprest balance at the end of April, Amara needs to consider the vouchers, refund, and the reimbursement note.

The vouchers total £38, the refund is £4, and the reimbursement is £12. However, since no voucher was issued for the reimbursement, it should be deducted from the imprest amount. Therefore, the total amount to be reinstated is £38 + £4 - £12, which equals £30.