If the float is increased to N1200; how much should the petty cashier receive after period 2?

Period 1:
……..Cash to petty cashier………….N1000
……..Petty cashier pays out…………N780

Period 2:
……..Petty cashier pays out…………N840

A. 160
B. 840
C. 1000
D. 1040

Correct Answer:

Option D – 1040

Explanation

previous imprest – pay out in period 2;

1,000 – 840 = 160
Then when it is increased to 1200;

1200 – 160 = 1040

The petty cashier will be reimbursed with 1,040