O Level Accounting (7707)•7707/12/O/N/22

Explanation
Imprest System Reimbursement Calculation Steps:
- Begin with original imprest: $100.
- Deduct total expenses paid out: 83 = $17.
- Add total receipts recorded in petty cash: 7 = $24 (current cash balance).
- Restore to full imprest: 24 = $76.
Why B is correct:
- Under the imprest system, reimbursement equals net expenditure (expenses minus receipts: 7 = 100.
Why the others are wrong:
- A. $24 is the current cash balance after expenses and receipts, not the restoration amount.
- C. $83 ignores receipts, overstating the net amount needed.
- D. $100 reimburses the full imprest, unnecessary when cash remains.
Final answer: B
Topic: Books of prime entry
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