WAEC Accounting 2017 Paper

Concept:Under the imprest system of petty cash, the cashier is reimbursed with the exact amount spent so that the fixed float is restored at the end of the period.Explanation:The fixed cash float given to the petty cashier is $\mathrm{Le}\,39,000$.During the period, the petty cashier spends $\mathrm{Le}\,37,500$ on various expenses.At the end of the period, the cashier presents vouchers for the total amount spent.The reimbursement is equal to the total amount spent, not the original float or the remaining balance.So the reimbursement made to the petty cashier will be $\mathrm{Le}\,37,500$.The balance left in hand before reimbursement would have been $\mathrm{Le}\,39,000 - \mathrm{Le}\,37,500 = \mathrm{Le}\,1,500$, but that is not the amount reimbursed.After receiving $\mathrm{Le}\,37,500$, the float is restored to $\mathrm{Le}\,39,000$ for the next period.Answer:C. $\mathrm{Le}\,37,500$